Input on Property Dealer Commission paid

I am registered in Delhi. One of my properties, situated in Gurugram, Haryana, was sold, and I paid a commission to a property dealer who is also registered in Delhi. The dealer has charged IGST on the commission. Can I claim Input Tax Credit (ITC) paid?

Replies (2)
Quick Summary
If you've paid commission on a property sale and incurred IGST, you might wonder about claiming Input Tax Credit (ITC). In this case, a property dealer registered in Delhi charged IGST on commission for a Gurugram property sale. However, ITC cannot be claimed on this commission because the sale of property itself is considered a non-taxable activity under Schedule III.

  • IGST Applicability: The property dealer correctly charged IGST because the Place of Supply is Haryana (location of the property) while the dealer is registered in Delhi.

  • ITC Eligibility: You cannot claim Input Tax Credit (ITC) on the commission paid, as the underlying transaction (sale of property) falls under Schedule III as a non-taxable activity.

Thank you so much 

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