Gst, PoS and ITC criteria on renting of residential dwelling under rcm

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harinder

Sr. Excutive-Finance and accounts

55 Points Joined January 2011

Sir, Good Morning..

If we paid gst on renting of residential Dwelling property under RCM then what would be PoS and can we also claim itc on this transaction if the properly is being used by our company director or employees.... ??

I would be very great full to you if u could reply in your busy schedule...

Thanks in advance.

With warm regards,
Harinder Kumar

Replies (12)

prasad Nilugal

GST Practitioner & Accounts

15029 Points Joined March 2014

As per section 12(2)(a) of the IGST Act ,POS will be location of the immovable property.

harinder

Sr. Excutive-Finance and accounts

55 Points Joined January 2011

Sir what about itc taking criteria??

can we claim itc or not?

Marimuthu

Manager

528 Points Joined February 2017

Yes, We can avail the ITC in the same month or in the next month , not beyond that.

harinder

Sr. Excutive-Finance and accounts

55 Points Joined January 2011

Sir, our gst consultant saying itc would be not allowed, since it is person expenditure and cover under block credit (17(5)

pls suggest further with help of gst provisions..

Marimuthu

Manager

528 Points Joined February 2017

Pl refer the Notification No. 05/2022-CentralTax (Rate)
New Delhi, dt

13th July, 2022

harinder

Sr. Excutive-Finance and accounts

55 Points Joined January 2011

Sir, I am aware about this 👆 notification no 5/2022/ct(r), in the said notification, rcm is applicable of renting of residential dwelling, but it doesn't say to take itc on it.

pls 🙏 anyone suggest can we claim itc? if yes then what will be the ground for taking this itc as per gst law...

waiting for your valuable inputs in this 👆 regards

thanks in advance
harinder Kumar

CS Advocate Abhishek Goyal

M Com FCS LLB M-AIMA

14043 Points Joined June 2009

1. Pos will be location of property so accordingly RCM will be payable under correct head.

2. RCM will be payable and ITC can be claimed once RCM is paid in cash like any other RCM, section 17(5) does not have any role here.

harinder

Sr. Excutive-Finance and accounts

55 Points Joined January 2011

Sir, sec 16(4) is also apply on itc on rcm, if we pay rcm on renting of car then its itc is block u/s 17(5)

so please🙏 any one have any expert advise that whether itc can be claimed on renting of residential dwelling or not?

please🙏 advise

Rajendra Prasad

Employee Private

1913 Points Joined July 2017

Any expenditure reflecting in Profit and loss of a business entity shall only business expenditure for the purpose of furtherance of business. If rent paid for personal consumption shall not shown as business expenditure in any business entity.

harinder

Sr. Excutive-Finance and accounts

55 Points Joined January 2011

Sir, if all expenditure are eligible to take itc which are showing in business profit and lose, then why put condition in 17(5) w. r. t. personal consumption expenditure..... if we pay mediclaim policy amt for our employees then it is block under sec 17(5)

pls 🙏 advise as per gst rules/provisions....

thanks in advance

Rajendra Prasad

Employee Private

1913 Points Joined July 2017

Mediclaim policy is for Health Insurance, a separate ITC restriction item in Section 17(5), that will not falls as personal expenditure.

harinder

Sr. Excutive-Finance and accounts

55 Points Joined January 2011

Ok...,then why put a separate condition in 17(5) w. r. t. personal consumption expenditure if in the business profit and lose, all expenditure are wholly for furtherance of business...

pls 🙏 advise

thanks in advance