Mon Nov 25 15:15:37 UTC 2024: ## Madurai Traders’ Body Calls for Bandh, But Chamber Disputes Need

**Madurai, November 25, 2024** – A traders’ body in Madurai has called for a bandh on November 29th to protest a new GST regulation on commercial rental properties. However, the Agro Food Chamber of Commerce and Industry has publicly opposed the bandh, calling it unnecessary.

The controversy centers around Notification No. 9/2024, effective October 10th, which shifts the responsibility of paying GST on rent from unregistered landlords to registered tenants under the Reverse Charge Mechanism (RCM). The Agro Food Chamber argues this amendment does not impose a new tax; GST on commercial rentals already exists. Registered tenants can claim Input Tax Credit (ITC) to offset the tax. The amendment only affects situations where the landlord is unregistered.

The Chamber further clarifies that the impact on composition dealers (manufacturers and traders with an annual turnover up to ₹1.5 crore) is minimal. While these dealers cannot claim ITC, the additional burden under the new regulation is negligible compared to the one percent concessional tax rate they already benefit from. The Chamber believes the bandh will harm businesses and detract from addressing more pressing issues. They have urged the calling organization to withdraw the bandh call.

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