Repair and Maintenance Input in case of Immovable property given on rent

[Manpreet Gulati]

Dear All,

A taxpayer is the owner of a hotel, who has further given on rent and has rental income as per GST. He had incurred repair and maintenance expenses for the hotel, which is a part of his revenue expenses.

Can he claim the Input of repair and maintenance expenses, like purchase of sanitary items, paint and other items related to it.

Regards

Manpreet

AI Summary

Hotel Owner Can Claim GST Input Tax Credit on Repair Costs if Not Capitalized, Avoids Section 17(5) Restrictions A taxpayer, who owns a hotel rented out for income under GST, inquired about claiming input tax credit (ITC) on repair and maintenance expenses, such as sanitary items and paint. Responses from various experts indicated that ITC is generally available for such expenses, provided they are not capitalized and do not fall under the restrictions of Section 17(5) of the CGST Act 2017. The consensus was that minor repairs and maintenance are not considered 'construction' and thus do not block ITC eligibility. Participants agreed that ITC should be claimable if the expenses are of a revenue nature.