ITC of GST for landlord Rental Income
This query is : Resolved
24 April 2026
Hi,
Can ITC for repairs and maintainance done for property be taken by landlord if he is charging and paying GST on Rent income?
Also can the same expense be capitalised?
Please advice.
Regards,
Can ITC for repairs and maintainance done for property be taken by landlord if he is charging and paying GST on Rent income?
Also can the same expense be capitalised?
Please advice.
Regards,
24 April 2026
Yes, you can claim Input Tax Credit (ITC) for repair and maintenance costs, but it depends entirely on how you record these expenses in your books.
Under Section 17(5) of the CGST Act, ITC is generally blocked for "construction" of immovable property. However, the law provides a specific carve-out for repairs.
ITC is only available if the property is used for taxable commercial renting or business purposes.
If you charge the repair costs directly to your Profit & Loss (P&L) account as an expense, you can claim ITC.
But If you capitalize the repair costs (add them to the value of the building in your Balance Sheet), the ITC is blocked.
Under Section 17(5) of the CGST Act, ITC is generally blocked for "construction" of immovable property. However, the law provides a specific carve-out for repairs.
ITC is only available if the property is used for taxable commercial renting or business purposes.
If you charge the repair costs directly to your Profit & Loss (P&L) account as an expense, you can claim ITC.
But If you capitalize the repair costs (add them to the value of the building in your Balance Sheet), the ITC is blocked.
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