Big changes are here for registered taxpayers under GST! Starting from October 10, 2024, new Reverse Charge Mechanism (RCM) rules come into play, impacting purchases of metal scrap and commercial property rent from unregistered persons. Here’s a quick summary of what you need to know:
New Goods Under RCM: Metal Scrap
- Notification: 6/2024 Central Tax Rate
- What’s New? RCM applies when registered buyers purchase metal scrap from unregistered sellers.
- Tax Liability: The buyer must self-invoice and can claim Input Tax Credit (ITC).
- Example: If Rakesh (unregistered) sells metal scrap to Mehul (registered), Mehul is responsible for GST.
New Services Under RCM: Commercial Property Rent
- Notification: 9/2024 Central Tax Rate
- What’s New? When an unregistered person rents out commercial property to a registered person, the tenant must pay GST.
- Tax Liability: The registered tenant self-invoices and claims ITC.
- Example: Vikram (registered) rents from Anil (unregistered) and is liable for GST on the rent.
Key Takeaways:
- Registered buyers and tenants must ensure compliance to avoid interest penalties and loss of ITC claims.
- Stay tuned for updates regarding TDS on supplies!
Make sure you’re up to date with these important changes and avoid missing out on ITC claims!