S.Ramakrishnan (Manager -Finance & Accounts) (62 Points)
12 December 2022good afternoon sir. . We have received invoice for rent for our director from a gst registered house owner (Company). We are paying gst for the same charged in their invoice. will the gst paid to them shall we take credit or not
Thanks & Regards
S.Ramakrishnan
Rajendra Prasad
(Employee Private)
(1842 Points)
Replied 13 December 2022
In my view GST on any rent paid for residential property has to be paid under Reverse Charge by recipient. Service provider has not to charge GST.
And in regard to availing ITC you can avail the same.
CA Bikram Shaw
(Service)
(37 Points)
Replied 13 December 2022
As per Notification No.05/2022-CentralTax (Rate) Dated 13 July 2022, Service provider will charge GST (if registered) and hence GST charged in Invoice is correct.
You can avail GST credit. Whether its commercial or residential if it is used in course or furtherance of business you can take credit, subject to section 16 and 17 complied.
S.Ramakrishnan
(Manager -Finance & Accounts)
(62 Points)
Replied 17 December 2022
thank you for your replly. my another query is rent paid for directors. gst is charged in their rent invoice. and they are registered person . shall we take itc on that invoices
Rajendra Prasad
(Employee Private)
(1842 Points)
Replied 17 December 2022
In my understanding Notification No.5/2022- Central Tax (Rate) is for the purpose of reverse charge, which has been issued in amendment to Notification No.13/2017- Central Tax (Rate).
CAclubindia
