GST on Rent Output tax and credit

Mr A sole proprietor doing paint supply business. He also let out one of his building for commercial purpose, were he is charging 18% GST.

Can he consider the entire out put tax charged on paint business and rent service as one

Egs

Output tax on rent 1000
Output tax on sale of paint 1000

Total output tax 2000

Less input tax paid on
purchase of paint 2000
(assuming purchase is
more than sales and
hence more input
credit)
Replies (2)
Quick Summary
This discussion clarifies how a sole proprietor running a paint supply business and also renting out a commercial building can manage their GST obligations. It confirms that the output tax charged on both the paint sales and the rental income can be combined. Crucially, the input tax credit (ITC) paid on paint purchases can be used to offset the total output tax liability, even if input tax exceeds sales tax.

Yes you can

Yes ITC can be utilised for the whole tax amount

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