Recovery of GST

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Vishwajeet Kamal

Others

69 Points Joined July 2015

Namaskar, My company provides self lease under which I can give my house on lease to my company and live in that house. My company deducts HRA and Licenese Fee in lieu of Self Lease provided.

I took this facility of self lease between 5th May, 2023 to 31st Mar, 2024 and after that I discontinued it. I am entitled for 50K max self lease and took 45K as per the prevailing rent in my locality of Ghaziabad. In Feb, 2024 we were told that the rent of my house is 35K as decided by a rent fixation committee and as per the policy the company will recover the exccess amount paid, which is 10K per month along with GST paid to Government on the rental amount.

Since GST was not paid to me, am I liable to pay back GST amount on the recovery amount?

Should the company recover the GST from the Government or from me?

Kindly guide me. Thanks!

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9456 Points Joined December 2011

Analysis of the Situation You're facing a situation where your company provided a self-lease facility, allowing you to lease your house to the company and live in it.

The company deducted HRA and license fees, and you're now being asked to repay an excess amount due to a rent fixation committee's decision.

Key Considerations - *Rent Fixation Committee's Decision*: The committee decided that the rent for your house should be ₹35,000, which is lower than the ₹45,000 you received.

- *Recovery of Excess Amount*: The company wants to recover the excess amount paid, which is ₹10,000 per month, along with GST paid to the government. -

*GST Liability*: You're wondering if you're liable to pay back the GST amount on the recovery amount. GST Implications -

*GST on Recovery Amount*: Since the company paid GST on the entire rental amount, they may be eligible to claim a refund or input tax credit for the excess GST paid. -

*Recovery of GST from You*: The company should not recover the GST amount from you, as you didn't receive the GST payment. Possible Solutions -

*Company Should Recover GST from Government*: The company should claim a refund or input tax credit from the government for the excess GST paid. -

*You Should Not Pay GST on Recovery Amount*: You shouldn't be liable to pay GST on the recovery amount, as you didn't receive the GST payment. Conclusion The company should recover the GST amount from the government, and you shouldn't be liable to pay GST on the recovery amount. It's essential to review your company's policies and consult with a tax expert to ensure a fair and compliant resolution.

Vishwajeet Kamal

Others

69 Points Joined July 2015

Thanks you Sir for a deatail reply.

Could you suggest any Law, Rule or Act which I can quote while asking my company not to deduct GST from the recover?
I had already paid tax as Income from Property on the Lease Amount in FY-2023-24. Can I ask for Tax credit on the recovered amount? If yes, under which section or rule I may ask for Tax Credit?