A registrant which has been charged GST on a commercial real estate purchase should promptly apply for a rebate

Where a registrant pays GST on a commercial real estate purchase, CRA considers that the correct approach is for the registrant to apply under s. 261 for a rebate for GST paid in error, rather than to purport to offset that tax by claiming an input tax credit.  Such ITC instead is an offset to its self-assessment obligation for the GST under s. 228(4).

Requiring the registrant to apply for a rebate is potentially problematic as the time limit for the rebate claim is two years after payment of the GST.

Neal Armstrong.  Summary of 25 February 2014 Memo 155876 under ETA s. 221(2).