GST query of a petrol pump dealer

A petroleum dealer has leased land to iocl and receives rent alongwith gst. The same dealer pays gst on rent charged by iocl for the dispensing units, tank etc. provided by iocl.

Query1 Can gst paid on rent of tank, dispensing units be claimed as itc?

Query 2 Can gst received on land rent be set off against gst paid on tank, dispensing units rent?
Replies (6)
Quick Summary
A petrol pump dealer is seeking clarification on GST regulations. They receive GST on land rent from IOCL while also paying GST on rent for dispensing units and tanks provided by IOCL. The core questions are whether the GST paid on the dispensing units and tanks can be claimed as Input Tax Credit (ITC) and if the GST received on land rent can be offset against the GST paid on the equipment rent. Initial advice suggests ITC may not be available as the equipment isn't used for taxable supply, impacting set-off possibilities.

Please check your agreement with iocl as tank and dispensing unit is part and parcel service which required by iocl, as per opinion yes you can claim the input
Query 1 : ITC not available
Query 2: Since itc not available therefore adjustment also not possible
@ CA Altamush Zafar can u please explain with reasons why itc not available in the given case

Because dispensing units, tanks are not used for providing taxable supply.

Thank u sir

You are welcome ...........

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