Input Tax Credit on GST paid

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This query is : Resolved

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A business renting a property in UP for manufacturing parts is paying IGST on the rent and deducting TDS via Form 26QC. While their CA advises against claiming Input Tax Credit (ITC) on this GST, other members suggest it's possible if the property is used for commercial purposes. The discussion aims to clarify the eligibility for claiming ITC on GST paid for commercially used rental properties.

Bhagwati Udyog

Bhagwati Udyog (Querist)
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05 June 2024 Hi Fellow members,

We have taken a property located in UP is taken on rent @ 65,000. The owner has GST registered in Patna. We are paying rent after deducting IGST @18% and are submitting Form 26QC regularly. Can we claim input tax credit on the GST paid?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 June 2024 What for the property is used.
You will be deducting TDS and filing form 26QC and paying 18% GST.
Confirm this.

Bhagwati Udyog

Bhagwati Udyog (Querist)
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06 June 2024 The property is used for manufacturing parts. We are already filing Form-26QR. My CA is saying that we cant claim input credit on GST paid on rent. Whereas my learned friends told me that input credit can be claimed. I want to confirm.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 June 2024 ITC on rent paid for property used for commercial activities can be claimed.
ITC can be claimed only if the property is a commercial property or used for commercial purposes.

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