Input tax credit - ho and branch
This query is : Resolved
28 May 2018
Dear Experts
X Ltd. has Head Office in Delhi and a Factory in Noida.
Since goods are manufactured and supplied out from factory, it is mandatory for X Ltd. to take registration in Uttar Pradesh (assuming it exceeds threshold limit of Rs. 20 lakh).
X Ltd. has thus taken GST registration in Uttar Pradesh.
Now X Ltd. pays rent of Rs. 3 Lakh per month for its Head Office In Delhi, thus attracting GST.
It wants to take credit of this GST paid on rent.
My question is how should billing take place and how can X Ltd. take credit of the GST paid on rent?
Regards
shivani
X Ltd. has Head Office in Delhi and a Factory in Noida.
Since goods are manufactured and supplied out from factory, it is mandatory for X Ltd. to take registration in Uttar Pradesh (assuming it exceeds threshold limit of Rs. 20 lakh).
X Ltd. has thus taken GST registration in Uttar Pradesh.
Now X Ltd. pays rent of Rs. 3 Lakh per month for its Head Office In Delhi, thus attracting GST.
It wants to take credit of this GST paid on rent.
My question is how should billing take place and how can X Ltd. take credit of the GST paid on rent?
Regards
shivani
28 May 2018
The ITC will be taken only in Delhi if have registered in Delhi...
29 May 2018
The above answer is generally correct. But CA G. Sekar had opined that CGST portion alone can be be claimed as ITC. Yet to be tested somewhere.
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