ITC availability

[Asked by Guest]

Suppose an employer of a company provides residential facility to it employees under a contractual obligation... now for this the employer takes a house property on rent from URD.

Question arises whether the transaction between the company & the URD is liable to RCM...?? If yes , will the benefit of ITC be available to company.....????

[KASTURI SETHI]

Renting of residential house is exempted from GST. Hence no question of RCM and ITC.

[Ganeshan Kalyani]

Renting of house for residential purpose is exempt from GST. Hence the company taking house property from URD is not liable to GST.

[Himansu Sekhar]

Gst is not applicable on renting of residential houses

[Himansu Sekhar]

Moreover transactions between employer and employee is not liable for tax.

[RAMESH PRAJAPATI]

Agree with view of experts. Since it is exempted supply, will not attract tax under RCM.

AI Summary

Exempt supply: residential rent is outside reverse charge, so input tax credit is not available.
Renting of residential accommodation is an exempt supply under GST; therefore rent paid by a company for employee housing to an unregistered landlord does not attract the reverse charge mechanism, and input tax credit is not available. Transactions between employer and employee for residential accommodation are similarly not taxable.