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ITC refund on rent (used for export of service)

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Utsav Gudhaka

55 Points Posted on 15 January 2023

I am starting a consulting work in Bangalore. I will consulting mainly to outside India clients. .

I have taken a house on rent and will be using it for work. I am also registering my GST address as this house. Can I claim ITC refund since export is 0% GST.

Also, is there any challenge of claiming this rent as business expense?

Replies (6)

Quick Summary

This discussion clarifies that businesses providing export services from India can claim a Goods and Services Tax (GST) Input Tax Credit (ITC) refund on rent paid for office space. It's confirmed that rent can be claimed as a business expense without issue. An alternative to claiming refunds is to apply for a Letter of Undertaking (LUT) and issue invoices at a 0% GST rate.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 15 January 2023

Yes you can claim refund of GST and there is no challenge in claiming rent as business expenses.

You can also apply for LUT and raise export invoice without tax rather then claiming refund.