CBIC Eliminates 18% GST on Rent for Small Taxpayers

22 Jan 2025 CW Team

In a relief for small taxpayers under the composition scheme, the Central Board of Indirect Taxes and Customs (CBIC) has eliminated the 18% GST on rent when leasing premises from property owners not registered under GST.

This decision, applied retrospectively from October 10, 2024, is set to significantly benefit restaurants, small traders, and service providers in the sector.

Previously, tenants registered under GST had to pay 18% GST through the reverse charge mechanism (RCM) when renting from unregistered property owners. Industry experts criticized the move, highlighting the strain it placed on working capital for composition scheme participants, whose turnover is below Rs 15 million.

Chartered accountant Karim Lakhani explained, “The rule created huge working capital issues for tenants under the composition scheme. Their tax liability is 1-6% based on their business type, and the 18% GST on RCM created issues as they couldn’t claim input tax credit. Now, CBIC’s move will significantly help small businesses.”

The composition scheme, which simplifies compliance for small taxpayers, offers lower tax rates ranging from 1% to 6% based on the type of business, but does not allow input tax credit (ITC) claims. The removal of the RCM liability addresses a long-standing concern among small-scale enterprises.

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..