The GST Council, in its 55th meeting held on December 21, 2024, recommended excluding taxpayers registered under the composition levy scheme from the reverse charge mechanism (RCM) for renting of commercial or immovable property (other than residential dwellings) by unregistered persons to registered persons. This exclusion pertains to the entry at Sr. No. 5AB introduced by Notification No. 09/2024-CTR dated October 8, 2024.
To address the period between the effective date of Notification No. 09/2024-CTR (October 10, 2024) and the issuance of the amending notification No. 07/2025-CT(Rate) dated January 16, 2025, the Council recommended regularizing the payment of GST on an "as is where is" basis.
This means that any GST paid under RCM by composition taxpayers during this intervening period will be regularized as per the practices adopted during that time.
In summary, composition taxpayers are now excluded from the RCM provisions related to renting commercial properties from unregistered persons, and any GST payments made under RCM during the specified period will be regularized accordingly.
