Background:
The 55th GST Council Meeting held on December 21, 2024, recommended to exclude taxpayers registered under composition levy scheme from the entry at Sr. No. 5AB introduced vide Notification No. 09/2024-Central Tax (Rate) dated October 08, 2024, vide which renting of any commercial/ immovable property (other than residential dwelling) by unregistered person to registered person was brought under reverse charge mechanism. Further, to regularize the period from the date when the Notification No. 09/2024-Central Tax (Rate) dated October 08, 2024, became effective i.e. from October 10, 2024 till the date of issuance of the proposed notification on “as is where is” basis.
Now:
The CBIC vide Notification No. 07/2025- Central Tax (Rate) dated January 16, 2025 has amended the relevant entry in Notification No. 13/2017– Central Tax (Rate) dated June 28, 2017, (“the Services RCM Notification”) by making the following amendments:
(B) against serial number 5AB, in column (4), after the words “Any registered person”, the words “other than a person who has opted to pay tax under composition levy” shall be inserted.
| 5AB | Service by way of renting of any immovable property other than residential dwelling. | Any unregistered person | Any registered person other than a person who has opted to pay tax under composition levy |
Similar notifications have been passed under the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).
The Notifications can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/01/CBIC-N.No_.-07_2025-CUI-Rate.pdf
