ITC CAN BE CLAIMED OF RCM PAID ON RENT UNDER 5% SLAB RATE

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This query is : Resolved

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This discussion clarifies whether Input Tax Credit (ITC) can be claimed on GST paid under Reverse Charge Mechanism (RCM) for rent, specifically at the 5% slab rate. For regular dealers, ITC is claimable if the output supply is eligible for ITC. Composition dealers generally cannot claim ITC, and their GST obligations on rent under RCM have also changed with recent amendments.

MBK AND ASSOCIATES

MBK AND ASSOCIATES (Querist)
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11 January 2025 PLEASE SUGGEST ITC CAN BE CLAIMED OR NOT

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 January 2025 If he is composition dealer, he cannot claim the ITC.

MBK AND ASSOCIATES

MBK AND ASSOCIATES (Querist)
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23 January 2025 BUT REGULAR IN REGULAR SCHEME HE CAN CLAIM OR NOT SIR ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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23 January 2025 Now with the amendment in act, composition dealers are not required to pay GST on rent under RCM.
Regular dealers are allowed for ITC claim provided the output supply is eligible for ITC claim. If output supply's GST rates are not eligible for ITC claim, then you cannot claim ITC for the GST paid under RCM.

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