Special Weekend Offer! Upgrade to CAclubindia Pro & enjoy 10% OFF with code SAVE10. Subscribe Now!

Courses :
Live
GST Live
View All

Commercial property; claim GST paid on property insurance

Others 248 views 3 replies

Newboyo

CFA//MBA//Corporate banker for 30+ years

28 Points Joined March 2015

Hello,

i own commercial property rented out to a corporate tenant, on which GST is received (from the tenant) and paid to the Govt. This property is located in NOIDA, NCR and (if relevant) FYI - I am an OCI holder filing taxes in India.

I've just purchased a property insurance policy via HDFC bank, on which GST is paid by me this insurance is on the property where GST is collected / passed through to the Govt

Can I set off the GST paid on the insurance policy against GST received by the tenant ?

Thanks

Replies (3)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9123 Points Joined December 2011

As a commercial property owner, you're eligible to claim input tax credit (ITC) on the GST paid on the insurance policy, but there are certain conditions to be met.

Eligibility for ITC: - *GST Registration*: You must be registered under GST as a taxable person. -

*Insurance Policy*: The insurance policy must be in the name of the business or the property. -

*GST Invoice*: You must have a valid GST invoice for the insurance policy. ITC on Insurance Policy: -

*ITC Claim*: You can claim ITC on the GST paid on the insurance policy, but only to the extent it relates to your taxable supplies (i.e., renting out the commercial property). -

*ITC Calculation*: Calculate the ITC amount based on the GST paid on the insurance policy and the extent it relates to your taxable supplies. Set-Off Against GST Received: -

*GST Received from Tenant*: You can set off the ITC claimed on the insurance policy against the GST liability arising from the rent received from the tenant. -

*GST Payment*: After setting off the ITC, pay the remaining GST liability to the government. Important Considerations: -

*GST Returns*: Ensure you're filing accurate GST returns (GSTR-3B and GSTR-1) to claim the ITC and set off against GST liability. - *OCI Holder*: As an OCI holder, you might need to comply with additional tax regulations.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9123 Points Joined December 2011

As a commercial property owner, you're eligible to claim input tax credit (ITC) on the GST paid on the insurance policy, but there are certain conditions to be met.

Eligibility for ITC: - *GST Registration*: You must be registered under GST as a taxable person. -

*Insurance Policy*: The insurance policy must be in the name of the business or the property. -

*GST Invoice*: You must have a valid GST invoice for the insurance policy. ITC on Insurance Policy: -

*ITC Claim*: You can claim ITC on the GST paid on the insurance policy, but only to the extent it relates to your taxable supplies (i.e., renting out the commercial property). -

*ITC Calculation*: Calculate the ITC amount based on the GST paid on the insurance policy and the extent it relates to your taxable supplies. Set-Off Against GST Received: -

*GST Received from Tenant*: You can set off the ITC claimed on the insurance policy against the GST liability arising from the rent received from the tenant. -

*GST Payment*: After setting off the ITC, pay the remaining GST liability to the government. Important Considerations: -

*GST Returns*: Ensure you're filing accurate GST returns (GSTR-3B and GSTR-1) to claim the ITC and set off against GST liability. - *OCI Holder*: As an OCI holder, you might need to comply with additional tax regulations.

Newboyo

CFA//MBA//Corporate banker for 30+ years

28 Points Joined March 2015

Thank you.

regarding your comment on other taxes for an OCI - you are referring to income tax implications?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register

Recent Threads

More recent discussions | Post

Related Threads