How much ITC available for us

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This discussion concerns an apartment complex with 504 flats aiming to understand how much Input Tax Credit (ITC) they can claim. They collect a significant monthly sum and pay GST on purchases for common areas. Based on their figures, the available ITC on Rs 1.8 lakh GST paid monthly is calculated to be Rs 21,690, assuming the purchases are for common purposes and adhering to relevant rules.

vijayakumar

vijayakumar (Querist)

26 September 2020
Respected sirs,

We are 504 APARTMENT COMPLEX.
Total Flats - 504
Total area 785419 Sq ft
Monthly collection from ALL the members = 3063134 Rs
out of which 45 Flats are above the LIMIT OF 7500 rS
45 FLATS WHOSE AREA IS 94634 Sqft & they pay 369073 Rs. 12.05 % of the total collections.
This 45 residents pay 66433 Rs as GST .per month.
We buy GST PURCHASES of 10 lak a month( & ~1.8 lac of GST a month in this out go.

QUESTION = HOW MUCH OF ITC can be availed from this 66433 Rs .
Thanking you,

Rama

Lekhraj sood

Lekhraj sood (Expert)

26 September 2020 Assuming that the purchases of Rs.10,00,000/- are for common purpose, you will be allowed to use Rs.21,690/- of ITC i.e. 12.05% of Rs.1,80,000/- (Rule 42 and section 18).

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vijayakumar

vijayakumar (Querist)

26 September 2020 tHANK YOU, tHANK YOU VERY MUCH SIR.

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