GST Tweak on Commercial Rentals Set to Boost Government Revenue, Say Experts

The GST Council's recent modification of tax rules on commercial rentals is expected to increase government revenues significantly. The adjustment focuses on placing the liability of GST payments on tenants instead of landlords through the Reverse Charge Mechanism (RCM). This move aims to tighten tax compliance and close gaps in the taxation system, making it harder for businesses to avoid paying the proper taxes on commercial leases. Experts predict that while this will streamline tax collection, it could also increase operational costs for businesses, particularly small firms that lease properties.