This discussion clarifies whether a company can claim input GST on residential property maintenance charges when directors are residing in the property. The consensus is that input tax credit (ITC) is generally not available for such expenses as they are considered personal in nature, even if the property is in the company's name. ITC is only permissible for transactions that are in furtherance of business activities.
02 January 2020
Dear sir, Can client claim GST on residential property where the MD is staying in the property and GST number of company is provided on the invoice along with companies name?
02 January 2020
No GST is payable on renting of residential property. Thus, question of GST payment and ITC does not arise. Residential property used by MD is for personal consumption of MD, and ITC is not available under Section Section 17(5)(g) of the CGST Act.
03 January 2020
Dear sir, Property is in the name of company. Directors are staying in the property. On the residential property the company is paying maintenance charges every half yearly. Whether the company can claim the INPUT GST on such maintenance charges?