TaxTMI 
TaxTMI 
A person is registered for GST for payment of tax on rent from commercial property. Subsequently, he diversifies into manufacturing activity. While setting up new business unit, he receives tax invoice for supply of plant & machinery etc., and ITC on the same is duly reflected in his GSTR – 2A. Can he set off this ITC against GST payable on rental income before starting the actual manufacturing.
GST Input Credit
04 Nov 2020 
2 Replies 
1899 Views Asked by
Input tax credit may be applied against rental GST even before manufacturing operations commence.
Input Tax Credit reflected in GSTR-2A for plant and machinery may be applied against GST payable on rental services of a registrant even before manufacturing begins, because credits for inputs or capital goods used in the course or furtherance of business do not require one-to-one correlation with specific outward supplies, subject to standard GST credit conditions and documentation requirements. (AI Summary)
Input Tax Credit reflected in GSTR-2A for plant and machinery may be applied against GST payable on rental services of a registrant even before manufacturing begins, because credits for inputs or capital goods used in the course or furtherance of business do not require one-to-one correlation with specific outward supplies, subject to standard GST credit conditions and documentation requirements. (AI Summary)