RENT PAID TO DIRECTOR, Goods and Services Tax - GST

[UDAYKANT PATHAK]

R/S

RENT PAID TO DIRECTOR IN PVT LTD CO IS RCM APLICABLE IN GST AS PER NOTIFICATION 13/2017 OF CGST ACT SUB SECTION 9 (3) OF CGST ACT?

Posts / Replies

[KASTURI SETHI]

Serial No.6 of Notification No.13/2017-C.T dated 28.6.17 as amended does not talk of renting service. Hence no RCM is applicable in the situation explained.

[MARIAPPAN GOVINDARAJAN]

Item No. 6 of the Notification provides that the services provided by a director to the company is coming under RCM and payable by the company. In my view RCM is applicable.

[Ganeshan Kalyani]

In my view, GST is payable by the company under RCM.

[KASTURI SETHI]

What I want to say if Director supplies service to an individual, no RCM is applicable. If Director supplies service to the said company or body corporate RCM is applicable. If individual provides renting of immovable property service to the Director of a Company, Individual is liable to pay GST.

[KASTURI SETHI]

For additional knowledge on the issue

Reverse charge system not applicable when an individual unregistered person sales goods or provides services not in furtherance of business - Sale of old jewellery by individuals to jewellers not subject to GST under Reverse Charge System

C.B.E. & C. Press Release No. 78/2017, dated 13-7-2017