Will you please clarify one issue. I am registered under GST. I am operating from my residence only. The residence is on rent basis. In July 2022, there is a change in GST wherein, if a tenant is GST registered, then GST on the rentals payable on RCM. If that be, I am entitled to claim ITC also. Will you please confirm.
Hii PSR MURTHY, As per law you are liable to pay GST on RCM Basic and eligible to Claim ITC . GST was applicable on the rent of a commercial property but from 18th July 2022, GST shall be charged if such residence is rented or leased by a GST-registered person/entity. As recommended at the 47th GST Council meeting, the tenant should pay 18 per cent GST on a reverse charge basis (RCM). However, they can claim this value as a deduction while they pay tax on sales in GST returns. As it is debatable issue but in my personal opinion you should take credit as you use for furtherance of business
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Will you please clarify one issue. I am registered under GST. I am operating from my residence only. The residence is on rent basis. In July 2022, there is a change in GST wherein, if a tenant is GST registered, then GST on the rentals payable on RCM. If that be, I am entitled to claim ITC also. Will you please confirm.
Hii PSR MURTHY,
As per law you are liable to pay GST on RCM Basic and eligible to Claim ITC .
GST was applicable on the rent of a commercial property but from 18th July 2022, GST shall be charged if such residence is rented or leased by a GST-registered person/entity. As recommended at the 47th GST Council meeting, the tenant should pay 18 per cent GST on a reverse charge basis (RCM). However, they can claim this value as a deduction while they pay tax on sales in GST returns.
As it is debatable issue but in my personal opinion you should take credit as you use for furtherance of business