Input tax credit on rent to rent

As per Section 17(2) of the CGST Act, ITC is not available for supplies of exempt goods or services. Since the proprietorship firm deals in exempted goods, the GST paid under RCM on rental for the business shop cannot be availed as ITC towards discharging tax liability on the commercial property let-out.

ITC on rent-to-rent transactions depends on whether the supplier's invoice is GST compliant. Common issues that block ITC claims:

• Wrong GSTIN on supplier invoice
• Incorrect Place of Supply
• Tax type mismatch (CGST/SGST vs IGST)

All these can be caught before claiming ITC. I built invoicecheck.in to validate exactly these errors in 15 seconds — helps avoid ITC rejections later.

What specific issue are you facing with the ITC claim? Happy to help further.