ITC on purchase of commercial property( shop/Godown/offce etc.)

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KETAN MEHTA (Querist)
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05 June 2026 If a GST registered person ( proprietor) purchase a commercials property which is under construction so one needs to pay GSt to builder. Can the proprietor claim such 12% GST paid to Builder a ITC in Gst return? if the said premises intended to rent in future. and if not intended for rent then?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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05 June 2026 Whether you can claim ITC on your commercial property purchase depends on how the transaction is classified. If you use the property for taxable business activities or renting, you are generally eligible, provided the purchase does not violate Section 17(5)(d) of the CGST Act. You should ensure the GST component is not capitalized in your books and that you have a valid tax invoice. Because this area is subject to specific legal interpretations regarding construction services, verifying your contract with a tax advisor is essential.

KETAN MEHTA

KETAN MEHTA (Querist)
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05 June 2026 Property is purchased like normally with support of agreement. How should construction service be bifercated for ITC?

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