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Claiming GST INPUT TAX CREDIT as an individual

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Self Employed

63 Points Posted on 06 June 2022

Hello CA club

I'm an individual considering renting out a property to a business ( play school ) who has expressed their inability to pay GST on top of the rent.

If I pay the GST from my pocket, is there any way I can claim input tax credit and claim the money back ?

I don't own any business but I employ several services like in fitness gym, old age help for myparents, and I'm planning to buy a new car where I guess I will have to pay GST for sure, electrocis fo rhome and work etc where I pay GST. Can I claim the GST paid from my pocket against GST paid on these services and purchases ?

Replies (6)

Quick Summary

An individual is asking if they can claim GST input tax credit (ITC) after paying GST on rental income for a property leased to a play school. They also want to know if GST paid on personal expenses like gym memberships, home electronics, and a new car can be claimed back against the GST they paid out of pocket. The general consensus is that ITC is only claimable for business-related expenses, not personal ones, and requires GST registration.

Raj Kashyap

35 Points Posted on 06 June 2022

I think No because you can claim ITC only when it is reflected in GSTR 2.
ITC is reflected in GSTR 2 only after suplier uploaded invoice in GSTR 1.

sabyasachi mukherjee

Profession

19974 Points Posted on 06 June 2022

Claiming gst input credit as an individual is acceptable provided certain conditions are fulfilled.

Aanchal Aggarwal

66 Points Posted on 06 June 2022

Hi!
in my opinion you can ask the play school to pay sum including GST (whatever sum you negotiate), that way the bill will have gst component.

for the car gst is not available (except under certain conditions, eg- sitting capacity 13 etc)

CA Puja Sharma

Chartered Accountant

3528 Points Posted on 06 June 2022

As mentioned above you are not carrying out any business. So you will not be allowed to tale ITC of the GST paid on services taken by you.

ITC is only allowed for the expenses which are being incurred for the furtherance of business. You cannot claim ITC for personal expenses.

If the total turnover in your case(including rental income) does not exceed Rs. 10 Lacs(special category states) or Rs. 20 Lacs during the year then you are not required to take GST registration and you will not be required to charge GST on the rental income from play school.