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Gst, PoS and ITC criteria on renting of residential dwelling under rcm

harinder (Sr. Excutive-Finance and accounts) (53 Points)

29 September 2022

Sir, Good Morning..

If we paid gst on renting of residential Dwelling property under RCM then what would be PoS and can we also claim itc on this transaction if the properly is being used by our company director or employees.... ??

I would be very great full to you if u could reply in your busy schedule...

Thanks in advance.

With warm regards,
Harinder Kumar

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12 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 29 September 2022

As per section 12(2)(a) of the IGST Act ,POS will be location of the immovable property.

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harinder (Sr. Excutive-Finance and accounts) (53 Points)
Replied 29 September 2022

Sir what about itc taking criteria??

can we claim itc or not?

Marimuthu (Manager) (525 Points)
Replied 29 September 2022

Yes, We can avail the ITC in the same month or in the next month , not beyond that.

harinder (Sr. Excutive-Finance and accounts) (53 Points)
Replied 29 September 2022

Sir, our gst consultant saying itc would be not allowed, since it is person expenditure and cover under block credit (17(5)

pls suggest further with help of gst provisions..

Marimuthu (Manager) (525 Points)
Replied 30 September 2022

Pl refer the Notification No. 05/2022-CentralTax (Rate)
New Delhi, dt

13th July, 2022

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harinder (Sr. Excutive-Finance and accounts) (53 Points)
Replied 02 October 2022

Sir, I am aware about this 👆 notification no 5/2022/ct(r), in the said notification, rcm is applicable of renting of residential dwelling, but it doesn't say to take itc on it.

pls 🙏 anyone suggest can we claim itc? if yes then what will be the ground for taking this itc as per gst law...

waiting for your valuable inputs in this 👆 regards

thanks in advance
harinder Kumar

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CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13706 Points)
Replied 05 October 2022

1. Pos will be location of property so accordingly RCM will be payable under correct head.

2. RCM will be payable and ITC can be claimed once RCM is paid in cash like any other RCM, section 17(5) does not have any role here.

harinder (Sr. Excutive-Finance and accounts) (53 Points)
Replied 05 October 2022

Sir, sec 16(4) is also apply on itc on rcm, if we pay rcm on renting of car then its itc is block u/s 17(5)

so please🙏 any one have any expert advise that whether itc can be claimed on renting of residential dwelling or not?

please🙏 advise

Rajendra Prasad (Employee Private) (1867 Points)
Replied 07 October 2022

Any expenditure reflecting in Profit and loss of a business entity shall only business expenditure for the purpose of furtherance of business. If rent paid for personal consumption shall not shown as business expenditure in any business entity.

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harinder (Sr. Excutive-Finance and accounts) (53 Points)
Replied 07 October 2022

Sir, if all expenditure are eligible to take itc which are showing in business profit and lose, then why put condition in 17(5) w. r. t. personal consumption expenditure..... if we pay mediclaim policy amt for our employees then it is block under sec 17(5)

pls 🙏 advise as per gst rules/provisions....

thanks in advance

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Rajendra Prasad (Employee Private) (1867 Points)
Replied 07 October 2022

Mediclaim policy is for Health Insurance, a separate ITC restriction item in Section 17(5), that will not falls as personal expenditure.

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harinder (Sr. Excutive-Finance and accounts) (53 Points)
Replied 07 October 2022

Ok...,then why put a separate condition in 17(5) w. r. t. personal consumption expenditure if in the business profit and lose, all expenditure are wholly for furtherance of business...

pls 🙏 advise

thanks in advance

1 Like