GST on Renting Commercial Property from an Unregistered Landlord
GSTZone Desk · Updated 2026
Short answer
Since October 2024, if a registered business rents commercial property FROM AN UNREGISTERED landlord, the tenant must pay 18% GST directly under reverse charge — the landlord doesn’t (and can’t) charge it.
In detail
This is a relatively recent change. Reverse charge on renting from an unregistered person was first introduced back in 2022, but only for RESIDENTIAL property rented to a registered person. Commercial property renting from an unregistered landlord to a registered tenant was brought into reverse charge separately, later, effective October 2024.
The practical effect: if you’re a registered business renting an office, shop, or warehouse from a landlord who isn’t GST-registered, you can’t simply assume ‘no GST because the landlord isn’t registered.’ The obligation shifts to you, the tenant, to self-assess and pay 18% GST on the rent, which — since it’s a legitimate business expense — you can also generally claim as ITC.
If the landlord IS registered, this whole reverse-charge mechanism doesn’t apply — the landlord charges GST normally under forward charge, as has always been the case for a registered lessor.
GSTZone tip
Before signing a new commercial lease, confirm your landlord’s GST registration status upfront — it directly decides who’s responsible for calculating, paying, and reporting the GST on your rent from day one.
Related questions
Does this RCM apply if the tenant is also unregistered?+
No — this specific reverse charge applies only where the RECIPIENT (tenant) is a registered person; an unregistered tenant renting from an unregistered landlord doesn’t trigger this GST obligation.
Can the tenant claim ITC on the RCM amount paid?+
Yes, generally — GST paid under reverse charge on genuine business rent is eligible for input tax credit, subject to the normal ITC conditions.
Want the law itself?
Go deeper on GST Basics
This page answers one question. Our GST Knowledge Hub carries every section and rule behind it — the exact legal text, what it means in plain English, and how it has been amended. Free, no login.
Need this sorted for your specific case?
Every business’s facts are a little different. Talk to a GSTZone expert — we’ll tell you exactly where you stand, and handle the filing if you need it.
Or call +91 97554 06939 · WhatsApp us