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

Input Tax Credit on repairs allowed where expenses are revenue in nature and not capitalised under GST.
A hotel owner receiving rental income may claim Input Tax Credit on repair and maintenance expenses if those costs are revenue in nature and not capitalised. Entitlement to ITC arises where supplies are used in the course or furtherance of business. Section 17(5) blocks credit only to the extent expenditures are capitalised for construction, reconstruction, renovation or major alterations; routine repairs and minor upkeep that are not capitalised remain eligible for ITC.