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CGST SGST CREDIT ELIGIBLITY

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S.Ramakrishnan

Manager -Finance & Accounts

43 Points Posted on 12 December 2022

good afternoon sir. . We have received invoice for rent for our director from a gst registered house owner (Company). We are paying gst for the same charged in their invoice. will the gst paid to them shall we take credit or not

Thanks & Regards

S.Ramakrishnan

Replies (4)

Quick Summary

This discussion clarifies the eligibility for claiming CGST SGST credit on rent paid for directors' accommodation. While typically GST on residential rent is paid under Reverse Charge by the recipient, a recent notification allows the service provider to charge GST if registered. Consequently, if GST is charged on the invoice for rent paid for directors and the conditions under Section 16 and 17 are met, the credit can be availed, regardless of whether the property is commercial or residential, provided it's used in the course of business.

Rajendra Prasad

Employee Private

1142 Points Posted on 13 December 2022

In my view GST on any rent paid for residential property has to be paid under Reverse Charge by recipient. Service provider has not to charge GST.

And in regard to availing ITC you can avail the same.

CA Bikram Shaw

Service

42 Points Posted on 13 December 2022

As per Notification No.05/2022-CentralTax (Rate) Dated 13 July 2022, Service provider will charge GST (if registered) and hence GST charged in Invoice is correct.

You can avail GST credit. Whether its commercial or residential if it is used in course or furtherance of business you can take credit, subject to section 16 and 17 complied.

S.Ramakrishnan

Manager -Finance & Accounts

43 Points Posted on 17 December 2022

thank you for your replly. my another query is rent paid for directors. gst is charged in their rent invoice. and they are registered person . shall we take itc on that invoices

Rajendra Prasad

Employee Private

1142 Points Posted on 17 December 2022

In my understanding Notification No.5/2022- Central Tax (Rate) is for the purpose of reverse charge, which has been issued in amendment to Notification No.13/2017- Central Tax (Rate).