QUESTION
Whether ITC of office rent of
immovable property is available if one floor of the office is not added in
business premises?
If the office is in one state and rent invoice issued for that immovable
property issued from other state with IGST, Will the ITC be available?
ANSWER
FACTS OF THE CASE:
Whether ITC of office rent of immovable property is available if one floor of
the office is not added in business premises?
If the office is in one state and rent invoice issued for that immovable
property from other state with IGST, Will the ITC be available?
LAW APPLICABLE:
SECTION 16 OF CGST ACT
(2) Notwithstanding anything contained in this section, no registered person
shall be entitled to the credit of any input tax in respect of any supply of
goods or services or both to him unless,''
a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed;
b) he has received the goods or services or both.
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SECTION 17 OF CGST ACT
(5) Notwithstanding anything contained in sub-section (1) of section 16
and subsection (1) of section 18, input tax credit shall not be available in
respect of the following, namely:-
(a) motor vehicles for transportation of persons having approved seating
capacity of not more than thirteen persons (including the driver), except when
they are used for making the following taxable supplies, namely:-
(A) further supply of such motor vehicles; or
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INTERPRETATION:
It is suggested to add the floor of the Office in your business premises
registration but ITC can not be disallowed on the ground that the premises are
not endorsed in registration if the conditions given in section 16 read with
section 17 are fulfilled.
ITC in GST is restricted under Section 17 sub section (5) of CGST Act. It nowhere restricts ITC of GST paid on rent of immovable property.
CONCLUSION: You can claim ITC of the IGST charged by the landlord if all the conditions given in Section 16(2) are fulfilled. (Reply dt. 08/09/2021)