Q. 143 Respected Sir, GST on RCM needs to be discharged on residential dwellings from 18th July, 2022. One of my client is a Pvt Ltd in Gujarat and has taken a residential property for employees in Telangana. Here GST on RCM needs to be discharged by Pvt Ltd. GST on RCM will be paid in IGST or CGST-SGST ?

Ans. In case of renting of residential dwellings to a business entity, goods and services tax to be levied w.e.f 18th July 2022 and the same is covered under RCM. In the above case, the renting of a residential unit to a business entity is covered under RCM. RCM will be paid in CGST – SGST as place of supply is the location of the immovable property. Moreover, you are required to take a detailed opinion on the same.

Q. 142 I am gst registered person and paying rent of Rs1924/ per month in cash to landlord. Bill is in my personal name. I received july 2022 bill in August 2022.How will I show in my books of proprietor ship firm residential bill? What will be the required journal entries? How much gst I am required to pay? Can I claim this gst? In which month should I claim? Please advise?

Ans. As per notification no. 05/2022- CT (R ) GST to be levied under reverse charge mechanism on services by way of renting of residential dwelling to a business entity only. No GST if it is rented to a private person for personal use, even if the proprietor or partner of the firm rents residence for personal use. 

Q. 141 For whom HSN code is necessary, a person showing turnover below 20 lacs or 40 lacs. Is it mandatory for him to record HSN wise stock summary ?

Ans. In case of registered person having aggregate turnover up to INR 5 crores or above INR 5 crores in the previous financial year, the requirement of mentioning the HSN code is as under: