Tuesday, July 28, 2015

GST DG'S DECISION 7/2015

DG'S DECISION 7/2015 dated 27 July 2015 uploaded by Customs. 

Utilities bills registered under landlord name now allow to claim input tax but subject to certain conditions & valid until 31 March 2016...

1) The property owner is not a GST registered person;
2) There must be a tenancy agreement signed by the property owner and the tenant; 
3) There must be a clause in the tenancy agreement or a written declaration signed by both the tenant and property owner in a separate document stating that “the input tax on the electricity and water invoices/bills can only be claimed by the tenant. However if the property owner becomes GST registered person, the tenant is not allowed to claim the input tax using such invoices/bills.”
4) The tenant must keep records of the input tax claimed for the electricity and water invoices/bills under the name of the landlord; and
5) The tenant shall stop claiming ITC using electricity and water invoices/bills under the name of the property owner once the property owner becomes a GST registered person. In this case the normal GST rules apply where the landlord will have to issue a tax invoice and charge GST to the
tenant. The tenant can use the tax invoice for claiming the ITC