The Punjab State Power Corporation Limited (PSPCL) on July 25, 2025, issued a circular regarding the Reiteration of GST Provisions Regarding Reverse Charge Mechanism (RCM) on Renting of Residential and Commercial buildings.
The Following circulars have been issued by PSPCL regarding GST applicability on renting of residential and commercial buildings:
• Renting of Residential Dwellings from any person:
As per GST Circular No. 03/2022 dated July 28, 2022 and 01/2023 dated January 24, 2023, w.e.f. July 18, 2022 where PSPCL avails the service of renting of residential dwelling from any person (registered or un-registered), GST is payable @ 18% (9% CGST + 9% SGST) by PSPCL under RCM.
• Renting of Immovable Property (Other than Residential Dwellings) from Unregistered Persons:
As per GST Circular No. 01/2024 dated October 11, 2024 and 03/2024 dated November 05, 2024, w.e.f. October 10, 2024, in cases where PSPCL avails the service of renting any immovable property other than a residential dwelling from an unregistered person, PSPCL is liable to pay GST @ 18% (9% CGST + 9% SGST) under RCM.
However, it has been observed that various accounting units are not complying with the provisions relating to payment of GST under Reverse Charge Mechanism (RCM) on rent of building services. Therefore, all accounting units are instructed to take the following steps to ensure compliance with the above instructions:
o Identify all Residential and Commercial Buildings, which have been taken on rent by PSPCL.
o Verify the GST registration status of the property owner in each case.
o In case, GST remains to be deposited, intimate the un-reported transactions to this office immediately for deposit of tax along with interest.
[Notification No: 349/GST-16]
