Gst on ac fitted by landlord in rented out property

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This query is : Resolved

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This discussion explores who can claim GST Input Tax Credit (ITC) on an air conditioning unit purchased by a landlord for a rented office space. The initial view suggests neither the landlord (unless the rental income is part of their GST-registered business) nor the tenant can claim ITC if the landlord buys it. An alternative perspective proposes that if the landlord declares rental income and pays GST on it, they should be eligible to claim the ITC on the AC, as it's used for their GST-registered rental income activity.

Kunjan

Kunjan (Querist)

09 June 2023 mr x having textile business has an additioanl office which he has rented out to mr. y (who is gst dealer in computers) .

mr.x wants to buy an ac for use by his tenant mr.y .

who can claim itc on this ac ?
my view --> mr.x is getting rental income (he is gst dealer for his seperate textile business) so he cant claim itc as its not used in his textile business.

mr.y cant claim if mr. x has purchased it. so is it wiser that mr.y buys ac in his name so atleast someone can get itc?

regards, ca kunjan, 9222 9222 92..

Kunjan

Kunjan (Querist)

09 June 2023 on the contrary, now i feel, itc can be taken if propretor has rental income (on which he paying gst) even if his main business is trading clothes.