Question: We all know that CGST/SGST paid of one State cannot be utilized as ITC of CGST/SGST of another State. Is the same applicable for IGST also. Suppose- X (landlord in Assam) gives a property of Delhi in rent to Y (tenant in Assam) for his business purposes. The POS will be Delhi. So, can Y utilize ITC of Delhi to make payment of GST liability of Assam?
Answer: The restriction of State limits is not applicable to IGST and the tax is available as Input Tax credit to the recipient. However, one may wonder if the establishment has been taken on rent in Delhi, how the same is being used in the course or furtherance of business in Assam and if there are activities being undertaken which are being used in Assam, then, Delhi unit per se becomes a supplier of services (being distinct person – See section 8 of IGST Act) to Assam unit.
