Input Tax Credit for Leasing if Commercial Property

[Guest]

I have lease out commercial office spaces on rent and I’m collection 18% gst on the same. Can you please let me know if I can claim input tax credit for this supply?

[KASTURI SETHI]

What is your taxable supply' ?

[YAGAY andSUN]

Yes, you can claim ITC on the tax paid on Maintenance of this commercial property.

[KASTURI SETHI]

I support the views of Ms.YAGAY and SUN, Sirs.

[Nitika Aggarwal]

Dear Sir,

As per Section 16 of CGST Act, 2017, every registered person is eligible to take the credit of tax charged on any supply of goods or services which are used or intended to be used in the course or furtherance of its business.

"Eligibility and conditions for taking input tax credit.

16. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person."

Since, in your case, the person is engaged in the business of providing its commercial property on rent, thus it is squarely covered under the ambit of term business as defined under CGST Act, 2017 and accordingly eligible to take the credit of such input and input services which are used for the provision of aforesaid taxable services.

Thus, there is no bar in the law with regard to the services provided by your goodself in order to avail the ITC of goods or services which are used for the provision of taxable outward supply.

Regards

Nitika Aggarwal

9953157961

[DR.MARIAPPAN GOVINDARAJAN]

I endorsed the views of the experts.

AI Summary

Claim ITC on GST for Leasing Commercial Offices: Section 16 CGST Act Allows ITC on Maintenance Expenses A user inquired about claiming input tax credit (ITC) on GST collected from leasing commercial office spaces. Responses confirmed eligibility for ITC on maintenance expenses related to the commercial property. One expert referenced Section 16 of the CGST Act, 2017, stating that registered persons can claim ITC on goods or services used in business activities, including renting commercial properties. The consensus among respondents was that the leasing activity qualifies as a business under the CGST Act, thus allowing the claimant to avail ITC for related goods or services.