TaxTMI 
TaxTMI 
Sir/ Madam, GST paid under RCM on residential flat by registered person w.e.f 18.7.22 and being in use by its employee, whether ITC is allowed to claim being a business expenditure? or will it be hit by provisions of Section 17 of CGST Act 2017
ITC of RCM paid on residential property w.e.f 18.7.22
05 Aug 2022 
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Input tax credit on employer provided residential accommodation may be disallowed as personal consumption under Section 17(5), litigation risk.
Whether input tax credit on rent of residential dwelling furnished to an employee is blocked as personal consumption or is available where the employer can demonstrate a business purpose is disputed; one view treats such use as blocked credit, another contends that employer centric business needs or workplace use place the supply outside blocked categories, with post 2019 statutory changes and the non obstante opening of the blocked credit provision creating litigation risk. (AI Summary)
Whether input tax credit on rent of residential dwelling furnished to an employee is blocked as personal consumption or is available where the employer can demonstrate a business purpose is disputed; one view treats such use as blocked credit, another contends that employer centric business needs or workplace use place the supply outside blocked categories, with post 2019 statutory changes and the non obstante opening of the blocked credit provision creating litigation risk. (AI Summary)