The Punjab State Power Corporation Limited (PSPCL) on October 11, 2024, notified regarding the GST under Reverse Charge Mechanism on renting of property.
The following has been stated:
• GST on renting of residential dwellings:
It has already been circulated that in case of service of renting of residential dwelling, GST is required to be deposited to Tax department by the services reciplent under Reverse Charge Mechanism (RCM).
• GST on renting of any property other than residential dwelling:
Earlier the service by way of renting any property other than residential dwelling was taxable under Forward Charge Mechanism @ 18% means the supplier of service was required to levy and deposit GST to tax department.
Accordingly, w.e.f. October 10, 2024, in case PSPCL avails the service by way of renting of any property other than residential dwelling from any unregistered person, GST under Reverse Charge provisions (RCM) is required to be paid by PSPCL to tax department @ 18% (9% CGST + 9% SGST).
[Notification No 613/GST-16]
