GST input credit on commercial property

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Quick Summary

If you've purchased a commercial property under construction and been charged 18% GST, you can likely claim the input tax credit. This is possible if your business is GST-registered, the property is in the business's name, and the seller provided a valid tax invoice. Crucially, the office must be used for taxable supplies, such as running your business or leasing it out with GST applied to the rent.

Husseini

Husseini (Querist)

23 October 2026 We have purchased under construction commercial property (office) value approx 75 Lacs. The seller issuing tax invoice charging 18% GST. Can we claim GST input Tax credit.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

23 October 2026 You should be able to claim the credit if all of the following apply:

Your business is registered under GST and the property is purchased in the business’s name/GSTIN.

The seller/developer issues a proper tax invoice showing its GSTIN, description, taxable value, HSN/SAC (normally 9954 for construction services), GST rate, and CGST/SGST or IGST separately.

The office is used for making taxable supplies—for example, operating your business there or leasing it and charging 18% GST on rent.

You pay the supplier and file the relevant GST returns; the invoice details must be available/reconciled on the GST portal.

You do not use the property predominantly for exempt supplies, personal purposes, or non-business purposes.

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Husseini

Husseini (Querist)

24 October 2026 Thank you very much for your reply.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

24 October 2026 You are welcome.

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