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Renting of Non-Residential Properties to Registered Entities Now Under GST

Renting of commercial property by an unregistered person to registered person will be covered under RCM in GST.

The GST department, vide its circular No. 09/2024-Integrated Tax(Rate) dated 8th October, 2024, has notified the services by way of renting of any property other than residential dwelling from an unregistered person to a registered person will be covered under the ambit of GST. This Notification will be effective from 10th October 2024.

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Thus, from October 10th onward, GST will apply to services involving the renting of commercial property even if the property owner is not registered within the GST. If a registered individual rents commercial property from unregistered person, they will be required to must pay GST under Reverse Charge Mechanism at applicable rates.

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