Taxability of letting out commercial premises to registered person by an URP, Goods and Services Tax - GST

[Rajat Gupta]

In light of the recent amendment vide notification no. 9/2024 CT(R) dated 08.10.2024, whether a registered person will be required to pay tax under RCM if the commercial property has been taken on consent i.e. without consideration? will there be different implications of this arrangement in cases where the property is owned by a related person?

Thanks

Posts / Replies

[Sadanand Bulbule]

Dear Sir

It can be understood from your query that, there is no supply of services to the recipient in terms of Section 7[1] in the absence of "consideration". GST Act does not speak about  "consent".There cannot be usage of commercial property by somebody without the consent of  owner. Otherwise it amounts to trespassing and illegal.

Secondly you have to take care of entry No. 2 of II Schedule as far as such issue between related persons is concerned.