The Central board of Indirect Taxes and Customs (CBIC) has issued a Corrigendum dated October 22, 2024 to Notification No. 09/2024-Central Tax (Rate) dated October 08, 2024, clarified that “any property” should be read as “any immovable property”, for renting of commercial property by an unregistered person to a registered person under Reverse Charge Mechanism (RCM) to prevent revenue leakage.
“In the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.09/2024-Central Tax (Rate), dated the 8th October, 2024, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 623(E), dated the 8th October, 2024, at page number 24, against serial number 5AB, in the table, in column (2) in the line 12, for “any property” read “any immovable property”,” the notification read.
Table of Contents
Notification No. 09/2024-Central Tax (Rate) dated October 08, 2024
The Government has notified the (reverse charge mechanism) RCM on renting of property other than residential dwelling by unregistered person to registered with effect from 10 October 2024.
The RCM on commercial property is also implemented from 10th October 2024 if supplier/Landlord is unregistered.
For businesses renting commercial properties, this means an added layer of compliance, with tenants needing to manage GST payments themselves. Tenants must ensure accurate GST filings and payments, as non-compliance could result in penalties.
The clarification on Preferential Location Charges (PLC) being taxed at the same rate as construction services is essential for those dealing with premium real estate offerings.
Corrigendum Details
F. No. 190354/149/2024
Date: 22/10/2024
