GST paid on the rent under RCM, does it eligible to take ITC ?

[RameshBabu Kari]

GST paid on the rent under RCM, does it eligible to take ITC ?

[Rajagopalan Ranganathan]

Sir,

If renting of building is an input service for providing any taxable output service then credit of same can be availed.

[RameshBabu Kari]

Dear Expert,

For a company having corporate office in rental premises, nature of business of such company is information technology services. Such company paying rent ₹ 60,000/- p.m and land lord is not registered. In this case gst shall be payable under rcm ? if so paid gst under rcm, does it can be availed as ITC by such company ?

[Himansu Sekhar]

Yes the credit is available if in the same state.

[Rajagopalan Ranganathan]

Sir,

You can avail the credit of gst paid under RCM.

AI Summary

Input tax credit: GST paid under reverse charge on rent claimable if rent is input for taxable outputs.
If renting of a building is an input service for providing taxable output services, GST paid on rent under the reverse charge mechanism can be claimed as input tax credit; where the landlord is unregistered and GST is paid under RCM, credit is available provided the rent is used for taxable supplies and the supply is intra state.