GST on common expenses

[Amresh kumar]

Sir/madam

Is GST levied on common expenses shared among two companies at same premises. This includes salary, electricity, internet, professional charges etc.

Regards

Amresh Kumar

AI Summary

GST Applies to Shared Expenses Between Companies; Input Tax Credit Available on Taxable Supplies per Schedule 1. A query was raised regarding the applicability of GST on common expenses shared by two companies operating from the same premises, covering costs like salary, electricity, internet, and professional charges. It was clarified that GST is applicable when expenses are recovered from another company, and input tax credit (ITC) can be claimed on such expenses. Electricity costs also attract GST when recovered. Proportionate ITC can be claimed on telephone and internet charges if supplies are taxable. The discussion emphasized proper accounting and taxability under GST regulations, referencing Schedule 1 for distinct persons.