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ITC of GST on rent paid.

Durga Bansal (14 Points)

06 July 2017

Dear Experts!

Can we claim the ITC of GST on rent paid??

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11 Replies

TARUN DHINGRA (SERVICE) (84 Points)
Replied 06 July 2017

yes, it can be claimed.

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CA CS Chirag (Practicing CA) (834 Points)
Replied 06 July 2017

Renting of property for residential purpose is exempt in GST as was in service tax. But if you are renting your property to any dealer for commercial purpose and cross the threshold limit, you have to charge GST @ 18% (100% ITC) on the rental amount and issue a tax invoice periodically to the tenant. So, rent expenses will increase marginally (but not effectively).

You need not collect GST on initial advances received if they are refundable on termination of the rental agreement. But on termination, if you withhold any part of the advance for any reason, GST is to be charged on the amount withheld.

Durga Bansal (14 Points)
Replied 18 July 2017

thanks sir

Gunvardhan (Student CA FINAL articleship) (14 Points)
Replied 14 September 2017

can we claim GST ITC on office rent paid to a reg.dealer??

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 14 September 2017

@ Gunvardhan.,
Yes. You can claim ITC on rent paid if you are registered regular dealer...

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satya (Executive Excise) (1839 Points)
Replied 19 September 2017

if a manufacturing unit have some vacant space, which is given on Rent to others paid GST also.

shall we claim ITC of Rent?

Ashish Garg (student) (24 Points)
Replied 26 March 2019

We have taken GST No. on Factory Address not on Regd. Address Because all the transactions are carrying at Factory.

In this case can we claim GST on Rent paid for Head Office/Regd office Premises?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 26 March 2019

Originally posted by : Ashish Garg
	We have taken GST No. on Factory Address not on Regd. Address Because all the transactions are carrying at Factory. In this case can we claim GST on Rent paid for Head Office/Regd office Premises?

Yes... But, Better to register every branches (Registered Office) under GST...

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Ashish Garg (student) (24 Points)
Replied 27 March 2019

Actually there is not even single transactions are done at regd. office. Regd office is only for official work

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 27 March 2019

Originally posted by : Ashish Garg
	Actually there is not even single transactions are done at regd. office. Regd office is only for official work

In this case can we claim GST on Rent paid for Head Office/Regd office Premises.....!!!

Is this a transaction or not....?

Note : I said "Better to register"

Read more at: https://www.caclubindia.com/forum/details.asp?quote=2020563&mod_id=402950&offset=1#reply

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sridhar (Accountant) (22 Points)
Replied 15 November 2023

Dear experts,

The company provides accommodation to its employees, and the rental invoices are issued in the company's name. The company pays the rent, including the Goods and Services Tax (GST). In this scenario, the company can claim Input Tax Credit (ITC) for the GST paid on the accommodation expenses.