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Claiming GST INPUT TAX CREDIT as an individual

Network (Self Employed) (44 Points)

06 June 2022

Hello CA club

I'm an individual considering renting out a property to a business ( play school ) who has expressed their inability to pay GST on top of the rent.

If I pay the GST from my pocket, is there any way I can claim input tax credit and claim the money back ?

I don't own any business but I employ several services like in fitness gym, old age help for myparents, and I'm planning to buy a new car where I guess I will have to pay GST for sure, electrocis fo rhome and work etc where I pay GST. Can I claim the GST paid from my pocket against GST paid on these services and purchases ?

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6 Replies

Raj Kashyap (32 Points)
Replied 06 June 2022

I think No because you can claim ITC only when it is reflected in GSTR 2.
ITC is reflected in GSTR 2 only after suplier uploaded invoice in GSTR 1.

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sabyasachi mukherjee (27117 Points)
Replied 06 June 2022

Claiming gst input credit as an individual is acceptable provided certain conditions are fulfilled.

Aanchal Aggarwal (76 Points)
Replied 06 June 2022

Hi!
in my opinion you can ask the play school to pay sum including GST (whatever sum you negotiate), that way the bill will have gst component.

for the car gst is not available (except under certain conditions, eg- sitting capacity 13 etc)

CA Puja Sharma (Chartered Accountant) (4972 Points)
Replied 06 June 2022

As mentioned above you are not carrying out any business. So you will not be allowed to tale ITC of the GST paid on services taken by you.

ITC is only allowed for the expenses which are being incurred for the furtherance of business. You cannot claim ITC for personal expenses.

If the total turnover in your case(including rental income) does not exceed Rs. 10 Lacs(special category states) or Rs. 20 Lacs during the year then you are not required to take GST registration and you will not be required to charge GST on the rental income from play school.

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