Input gst on residential property

Save Share

This query is : Resolved

Quick Summary

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.

Nimitha Kundanam

Nimitha Kundanam (Querist)
Follow

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?

Gokul Sharma

Gokul Sharma (Expert)
Follow

02 January 2020 no.......gst input not available for the personal nature of expenditure.

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

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.

Nimitha Kundanam

Nimitha Kundanam (Querist)
Follow

02 January 2020 GST is paid on maintenance charges, can the company claim GST on residential property maintenance

Gokul Sharma

Gokul Sharma (Expert)
Follow

02 January 2020 what amount on avg of monthly maintenance bills.......input not allowed as personal nature of expenditure

actually gst should not be charged on the monthly maintenance bills upto a certain limit i.e upto 7500 per month

https://economictimes.indiatimes.com/news/economy/18-gst-on-flat-owners-paying-monthly-maintenance-of-over-rs-7500/articleshow/70334825.cms?from=mdr

Nimitha Kundanam

Nimitha Kundanam (Querist)
Follow

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?

Gokul Sharma

Gokul Sharma (Expert)
Follow

03 January 2020 not available..........

Nimitha Kundanam

Nimitha Kundanam (Querist)
Follow

03 January 2020 Dear sir,

Thanks for your precious time. Could you kindly tell me why? Is it because of personal nature?

Gokul Sharma

Gokul Sharma (Expert)
Follow

03 January 2020 YES .........ITC AVAILABLE ONLY THOSE TRANSECTIONS WHICH ARE IN FURTHERANCE OF BUSINESS.
HOPE YOU UNDERSTAND

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now