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

AI Summary

GST Exemption on Residential Rentals for Foreign Employees; Input Tax Credit Not Available Under Notification No. 12/2017 A manufacturing unit inquired about the applicability of GST and the availability of Input Tax Credit (ITC) on residential apartment rentals for foreign employees involved in production and quality jobs. Experts clarified that renting residential dwellings for use as residences is exempt from GST under Notification No. 12/2017-Central Tax (Rate), making ITC unavailable. Additionally, it was noted that the nature of the employees' jobs does not justify ITC eligibility, as residential rent does not fall under business expenses eligible for ITC. The discussion concluded with appreciation for the expert advice provided.