Suppose we have an office situated in a building where we are paying INR 1,25 lakh p.m i.e.INR 15 lakh P.A.In the same building there are other several offices for which the owner get approx 4 times INR 1.25 lakh per month=INR 60lakh p.a.
Previously the owner didn't tell us about charging GST. Now he is saying to give 18% of GST over 1.25lakh i.e.1.47lakh.
Now the question is as per the rule 18% gst levied if the rental income is more than INR 20lakh.Its ok as per owners side.However how can we claim the refund for the same after the end of FY.
24 August 2017
The GST paid by you to the landlord can be set-off as Input Tax Credit against your output tax liability of GST. I do not think that you can claim a refund. It can only be used to offset your liability, if any.
24 August 2017
Thanks Mr Anand & Mr Rakesh.However if a company provides consultancy service to a US Client ,how can input Tax credit get set off.Our core business is to provide service to US CLINT and we are receiving income in foreign exchange.As export of service is free from GST (if I m not wrong) how can we set off GST.
CAclubindia
