TaxTMI 
TaxTMI 
TaxTMI 
regarding excemption on rent
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....egarding excemption on rent<br> Query (Issue) Started By: - FARIDUDDIN AHMAD Dated:- 10-2-2024 Last Reply Date:- 12-2-2024 Goods and Services Tax - GST<br>Got 11 Replies<br>GST<br>a government of india undertaking unit of factory engaged in the business of manufacturing at rae bareli collected rent of Rs-1,17,20,657/- from there employee on the residential facility provided to staff in the quatres....
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....(House) build for residential purpose and declared it in GSTR-3B as exempt supply. factory received SCN u/s 73 requiring to deposit tax on exempt supply. kindly advise it is exempt supply or taxable on the basis of RCM. Reply By KASTURI SETHI: The Reply: What is the period involved ? Reply By FARIDUDDIN AHMAD: The Reply: period involved is F.Y-2018-19 Reply By KASTURI SETHI: The Reply: Are ....
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....you sure it is rent ? Has this amount been collected from all employees ? What is the practice of such amount after 18-19 ? Reply By KASTURI SETHI: The Reply: A Govt.of India undertaking unit does not fall in the definition of Govt. Reply By Shilpi Jain: The Reply: If it is rent collected for the residential accommodation provided to the employees then there is an exemption available. GST ....
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....is not liable Reply By Shilpi Jain: The Reply: However, you should check whether the department is asking you to pay GST on the rentals or it is asking you to reverse proportionate input tax credit? Reply By Shilpi Jain: The Reply: In case it is for reversal of credit, most probably the department would have taken the entire credit availed by the company and calculated the reversal. You shoul....
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....d consider only the common credit for the reversal and any specific credit. If further clarity can be provided guidance can be given. Reply By FARIDUDDIN AHMAD: The Reply: may be some outsider not an employee has also been provided residential facility on rent. i humbly request kindly let me know notification/circular for exemption on rent collected from staff and what will be the treatment if ....
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....it has been collected from outsider Reply By FARIDUDDIN AHMAD: The Reply: department has requested to reverse the common input credit as per rule 42 & 43. Reply By KASTURI SETHI: The Reply: Dear Querist, In order to save expert's time, query should be proper and correct in the first instance.The whole scenario has changed. Reply By FARIDUDDIN AHMAD: The Reply: Sorry Sir. The SCN Issue....
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....d is in respect of reversal of ITC As Per Rule 42 & 43. I Need Clarification Regarding Reversal of Common Input in proportanate to exempt supply is applicable to our exempt supply related to rent collected from staff.<br> Discussion Forum - Knowledge Sharing ....