Under Indian GST law, renting of property is treated as a supply of service. The applicability of GST depends on the type of property being rented:

• Residential use: No GST is applicable if the property is used (or intended) for residential purposes.
• Commercial use: Renting commercial property attracts 18% GST under Forward or Reverse Charge, depending on the registration status.

GST on Commercial Rental Income – RCM Applicability (from 10-Oct-2024)

As per Notification No. 09/2024 – Central Tax (Rate) issued by CBIC on October 8, 2024:

• When a registered person (tenant) rents commercial property from an unregistered landlord, GST is payable under Reverse Charge Mechanism (RCM).
• The tenant must pay 18% GST and can claim Input Tax Credit (ITC) if applicable.

RCM Table Inclusion – Serial No. 5AB

Amendment: Notification No. 07/2025 – Exclusion for Composition Dealers

Based on the 55th GST Council meeting (Dec 21, 2024), CBIC amended RCM scope under Serial No. 5AB. Effective exclusion:

• Composition scheme taxpayers are excluded from RCM applicability.
• Regularization period: October 10, 2024 to January 15, 2025.
• RCM details must be reported monthly in GSTR-3B:
  • Table 3.1(d) – Tax liability under RCM
  • Table 4(A)(3) – Corresponding ITC claim

Revised RCM Table Entry

Summary Table – GST Applicability on Rent

*FCM = Forward Charge Mechanism | RCM = Reverse Charge Mechanism