CBIC replied to Shri Kodikunnil Suresh Ji, Hon’ble Member of Parliament (LS), New Delhi regarding the withdrawal of GST imposition on rent for commercial properties under RCM.
Dear Shri Kodikunnil Suresh Ji,
Please refer to your letter dated 24.10.2024, addressed to the Hon’ble Union Finance Minister, requesting to withdraw GST imposition on rent for commercial properties especially for small scale traders.
2. In this regard, I would like to inform you that renting of commercial property by unregistered person to a registered person was brought under Reverse Charge Mechanism (RCM) with effect from 10.10.2024 on recommendation of the 54th GST Council to prevent revenue leakage.
3. I would also like to inform you that changes in GST rates and exemptions are made on the recommendations of the GST Council, which is a constitutional body having representatives of both Centre and the States.
4. The request to withdraw GST imposition on rent for commercial properties under RCM is under examination and shall be placed before the GST Council in due course.
With regards,
Yours sincerely,
(Pankaj Chaudhar)
Shri Kodikunnil Suresh
Hon’ble Member of Parliament (LS)
24, G.R.G. Road
New Delhi – 110001
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