TaxTMI 
TaxTMI 
ITC taken query in GST in case of rental income from commercial property
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....TC taken query in GST in case of rental income from commercial property<br> Query (Issue) Started By: - milan bamal Dated:- 8-4-2026 Last Reply Date:- 9-4-2026 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>We have given our warehouse (a commercial building) on rent to a company. Every month, I raise a rent tax invoice. I have to pay GST to government through GST return Now, I want to ....
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....understand on which items/services I can claim Input Tax Credit (ITC) so that I can adjust it against my output GST liability. Reply By milan bamal: The Reply: Kindly Note this Point before any answer Warehouse is in name of Company A Comapny A is Owner 2nd Company B is Tenant Reply By Raam Srinivasan Swaminathan Kalpathi: The Reply: Dear Querist The query is incomplete. Kind....
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....ly enumerate the details of expenditure, on which GST suffers, that will be incurred by A. Only then, can a cogent reply be provided, else, the only option available will be to simply quote the law contained in Sec.16 of the CGST Act, 2017 Reply By Shilpi Jain: The Reply: Except the S. 17(5) credits u would be eligible to take all credits. So now u need to check what expenses u need to tak....
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....e credit and see if it falls under the above provision Reply By Pinnacle Tax Advisor: The Reply: You are eligible to claim input tax credit (ITC) on services that are directly attributable to your outward supply of services (i.e., leasing of warehouse), except for those services blocked under Section 17(5), subject to fulfillment of the conditions prescribed under Section 16 of the CGST Act ....
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.... Reply By YAGAY andSUN: The Reply: In the given facts, Company A (owner) is supplying taxable renting of immovable property service to Company B (tenant) and discharging GST on such rental income. Accordingly, Company A is entitled to avail ITC under Section 16 of the Central Goods and Services Tax Act, 2017 to the extent inputs/input services are used in the course or furtherance of this taxab....
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....le renting business, subject to restrictions under Section 17(5). Eligible ITC (generally allowable): Company A can avail ITC on goods/services directly linked to maintenance and operation of the warehouse, such as: • Repairs and maintenance (civil, electrical, plumbing not resulting in capitalisation) • Security services, housekeeping, pest control • P....
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....rofessional services (legal, accounting, leasing consultancy) • Insurance of building • Property management services • Brokerage/commission paid for renting • Utilities (if borne by Company A and not recovered purely as reimbursement) These qualify as input services used for providing taxable renting service and hence ITC is admissible. Blo....
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....cked / Restricted ITC (important) U/S 17(5): • Construction / reconstruction / renovation / additions to the warehouse, to the extent capitalised in books, is blocked. This is a critical restriction, even if GST is paid, ITC is not available if the cost is capitalised. • Works contract services used for construction of immovable property (other than plant & machinery) are....
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.... also blocked. Key distinction (practical): • If expense is revenue in nature (P&L) - ITC generally allowed • If expense is capitalised (fixed asset) - ITC blocked Other conditions: • Valid tax invoice in name of Company A • GST actually paid by supplier • Return compliance (GSTR-2B reflection / Section 16 conditions) â....
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....€¢ No personal or non-business use Special points: • If the warehouse is used exclusively for taxable renting, full ITC is available (except blocked credits). • If partly used for exempt/non-business purposes, proportionate reversal under Section 17(2) applies. Company A can claim ITC on all operational and maintenance-related inward supplies used for renting act....
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....ivity, and utilise the same to offset output GST on rent. However, ITC on construction or capitalised renovation of the warehouse is not admissible, which is the most significant restriction in such cases.<br> Discussion Forum - Knowledge Sharing ....