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IGST charged on yarn is non refundable. But can it be adjusted against IGST charged on rental of commercial property.

28 July 2017

I have a fabric manufacturing unit in Amritsar, Punjab. under the same PAN I have a commercial property in New Delhi.

My question is on purchasing yarn 18% IGST will be paid and it is non refundable. On providing commercial rental property I will be charging 18% IGST on monthly rent. Can the IGST charged on rent of commercial property be adjusted with the IGST on charged yarn which will be used for manufacturing fabric. As I will always be having credit.

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2 Replies

RAJA P M ("Do the Right Thing...!!!") (128062 Points)
Replied 28 July 2017

Yes. You can adjusted the IGST if the Property is Your Company Name.

The proprty is any individuls name then cannot be ADJUST.....

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Keshav Kakar (82 Points)
Replied 28 July 2017

Thanks. Can you please confirm if property is in personal name and it is a commercial property in New Delhi and it's annual rental income is less than rs.20lacs. Does it required GST registration? If so in which state I am based in Amritsar, Secondly under same PAN but different name I am running a manufacturing unit of Textiles with annual turnover above 1cr which is registered for GST in Punjab. In both PAN is same.