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GST input on rented office- renovation

Ahanak (Article) (281 Points)

22 May 2024

A company entered into a contract with a service provider to provide furniture , table , chair and also office renovation like repair , maintenance, painting etc. of the rented office . The service provider billed a single amount for the same charging gst . whether the input of the gst be available or not.

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3 Replies

CA Anoop Kumar Sharma (Accounts Manager) (1626 Points)
Replied 22 May 2024

In my opinion, GST paid for the furtherance of business in relation to repairs and maintenance expenditures (such as chairs, tables, etc.) on rented property is allowable, but only to the extent that these expenses are not capitalized.

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Ahanak (Article) (281 Points)
Replied 22 May 2024

Sir we have entered into contract for supply of furniture and also office renovation I.e; composite supply of goods and services for which the dealer have charged a single amount whether gst paid on this amount would be allowed as input or not.

CS Advocate Abhishek Goyal (M Com FCS LLB M-AIMA ) (13577 Points)
Replied 24 May 2024

See, charging a single amount (in the nature of package) is not criteria for determining composite supply as composite supply is one in which one of the supply is a principal supply and these are naturally bundled. so in my opinion GST should have been charged separately on goods and services. Even otherwise services to be supplied does not pertain to repairing or maintenance of furniture etc.