Renting a shop or office from an unregistered landlord? GST reverse charge, the self-invoice and the ITC
Does it apply to you?
| Landlord | Tenant | Who pays GST on rent |
|---|---|---|
| Registered | Anyone | Landlord charges GST on the invoice (forward charge) |
| Unregistered | Registered (regular) | Tenant, under reverse charge |
| Unregistered | Registered (composition) | Not covered from 16 Jan 2025 |
| Unregistered | Unregistered | No GST |
Residential dwellings follow a separate rule: renting a residential dwelling to a registered person has been under reverse charge since 18 July 2022, with an exception for a proprietor who rents it in a personal capacity for living.
Monthly steps for the tenant
- Raise a self-invoice for the rent within 30 days of the supply (Rule 47A).
- Report it in GSTR-3B table 3.1(d) (inward supplies liable to reverse charge).
- Pay the tax in cash through the electronic cash ledger; ITC cannot be used to pay reverse-charge tax.
- Claim ITC of the same amount in table 4A(3) if the premises are used for business and no blocking rule applies.
Common mistakes
- Assuming "landlord not registered" means "no GST". The liability moved to you.
- Setting the RCM off against ITC. Reverse-charge tax must be paid in cash first.
- No self-invoice. Without it, the ITC claim is weak in an audit.
- Forgetting maintenance or parking charges billed with the rent; they usually follow the rent.
- Ignoring interest. Late reverse-charge payment carries interest under section 50 even if the ITC is equal.
Checklist
- Landlord's GST status checked on the GST portal
- Property is not a residential dwelling
- You are a regular (not composition) taxpayer
- Self-invoice raised within 30 days
- RCM paid in cash in GSTR-3B, ITC claimed in 4A(3)
Frequently asked questions
Do I pay GST if my shop owner is not registered under GST?
If you are a regular GST-registered tenant, yes: from 10 Oct 2024 you pay 18% GST on the rent under reverse charge (Notification 09/2024-CT(R)).
Does RCM on rent apply to composition dealers?
No. From 16 January 2025 composition taxpayers were excluded from this reverse-charge entry.
Can I take ITC of GST paid on rent under RCM?
Generally yes, in the same GSTR-3B, if the premises are used for business and no blocked-credit rule applies.
What is the time limit for the self-invoice?
Rule 47A of the CGST Rules requires the self-invoice within 30 days of receiving the supply from an unregistered person.
Official sources
Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 21 Oct 2026.
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