eligibility of Input tax credit
Dear sir,
A taxable person is taking credit of input tax and making offset with out put tax and balance tax is paying. He is also having commercial rental income and making the set off with regular input tax is it correct? or the out put tax on commercial rent to be paid in cash only? please clarify with supporting section or ruling etc. Thanks in advance
Input Tax Credit Eligible for Offsetting Output Tax on Rental Income Under GST, No Direct Correlation Required A query was raised regarding the eligibility of using input tax credit (ITC) to offset output tax on commercial rental income under the Goods and Services Tax (GST) regime. Three respondents provided their insights. The consensus among the experts is that ITC can be used to offset the tax payable on rental income, as there is no requirement for a direct correlation between input and output taxes in GST. The responses highlight that as long as inputs are used in the course or furtherance of business, ITC can be utilized for settling output tax liabilities. (AI Summary)
Goods and Services Tax - GST