RCM on rent for Restaurant
This query is : Resolved
19 September 2022
Sir,
One of my friend is running a Restaurant. He has opted for 5% GST without availing ITC.
Now, if he pays GST on rent under RCM clause, can he avail the same as ITC, though he
is ineligible to avail the ITC on other supplies. Further, is it correct to enter the Rent amount
along with GST in Table 3.1 (d) in GSTR 3B return.
Kindly advice.
One of my friend is running a Restaurant. He has opted for 5% GST without availing ITC.
Now, if he pays GST on rent under RCM clause, can he avail the same as ITC, though he
is ineligible to avail the ITC on other supplies. Further, is it correct to enter the Rent amount
along with GST in Table 3.1 (d) in GSTR 3B return.
Kindly advice.
20 September 2022
Though the liability is discharged under RCM for rent, same cannot be availed as ITC. Because composition dealers are completely barred from claiming any input tax credit. As rightly pointed out by you, reporting of same in GSTR-3B would be done in Table 3.1(d)
20 September 2022
Thanks Mam. Actually, we are under Regular scheme only. Not Composition dealer. Still, should we forego the ITC on RCM - Rent ?
22 September 2022
Yes. Still you are not allowed to claim ITC on rent as 5% concessional rate of GST comes with the condition of non-availment of ITC.
22 September 2022
Ok Mam. Thanks a lot.
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