eligibility of Input tax credit

[Bharat Cholleti]

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

[Ganeshan Kalyani]

In GST, the credit is eligible if the inputs are used in course or furtherance of the business. In my view, you can offset the regular input tax against the tax payable on rental income.

[YAGAY and SUN]

In our view, you can adjust ITC for paying of output liability.

[KASTURI SETHI]

I support the views of both experts. There is no one to one correlation in ITC under GST.

AI Summary

Input tax credit can be offset against output tax, including liabilities on commercial rent, if used for business purposes.
A taxable person may claim input tax credit where inputs are used in the course or furtherance of business and may offset that ITC against output tax liabilities, including tax on commercial rental income; GST does not require a one to one correlation between specific inputs and particular outward supplies for such adjustment.