Rental Charges of Directors accommodation to be considered as ISD

[Venkata K]

Dear Expert 

One of our client registered dealer in Haryana and Karnataka  and having its ISD registration in Karnataka. Directors accommodation has been provided by company by making payment of rental charges to Unregistered Dealer of Haryana. we are GST under RCM for the rental charges in Haryana Registration. From 01-04-2025 the ISD is made mandatory for the single PAN and 3 registration in different states. In view of this compulsion whether my client should treat this rental charges paid towards Directors accommodation as common credit and shall transfer the same to ISD for further distribution? 

AI Summary

RCM GST on director accommodation is common input credit to be availed and routed via ISD under single-PAN rule A registered group with multiple state registrations and an ISD asks whether rental payments for a director's accommodation (paid to an unregistered Haryana lessor and taxed under RCM) must be treated as common input service and routed through the ISD after the single-PAN/mandatory-ISD rule effective 01-04-2025. Responses state that such RCM-paid GST on directors' accommodation is a common credit that should be availed in the Haryana registration and transferred via the ISD for distribution to other registrations. Treatment may differ if the lease is between the director and the lessor, and claiming ITC could invite departmental scrutiny.