GST Applicability on Employee apartment rent and input tax credit

[AnilKumar Vyas]

Dear Experts,

Thanks for your valuable support ............

We are a manufacturing unit, our some foreign expat living in residential service apartment. all the employees are related to production and quality related job. Please suggest, is ITC of GST available on this service?

Some of employees living in residential apartment (not service apartment). is GST applicable on these residential property rental service. if yes, please also suggest, availability of ITC.

Regards

[Rajagopalan Ranganathan]

Sir,

Services by way of renting of residential dwelling for use as residence is chargeable at Nil rate of CGST vide Sl. No. 12 of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017. This service will fall under heading No.9963 or 9972. Since CGST payable is nil the question of availing ITC does not arise.

[Himansu Sekhar]

Residential houses renting do not attract gst. The owner of the house will not charge gst.

[KASTURI SETHI]

The plea that employees are related to production and quality related jobs cannot be the ground for availing ITC in the form of " in the course or furtherance of business". This is after in agreement with the views of both experts.

[AnilKumar Vyas]

Dear Experts,

Thanks for your valuable suggestion and expert opinion.

AI Summary

Residential rent nil-rate under GST removes input tax credit entitlement for employer-provided employee accommodation services. Renting of residential dwelling for use as residence is nil-rated under GST; the supplier does not charge GST and no input tax credit is available. The fact that occupants are employees or related to production does not make residential rent an allowable ITC. Distinction between residential dwelling and service apartment is determinative for GST applicability.