Itc for commercial rental income

There is no such exhaustive list of expenses for which you can claim it all depends on the expenses incurred by you for earning such income.

For eg: if you take service of some broker for such renting and if you pay GST on his services then you can claim credit.

If you pay maintenance charges of the property and if the society charges GST then you can claim its credit.

There are different expenses for different people. As per GST if you incurr any expense for furtherance of business you can claim its credit.

There is a list of expenses for which you can't claim credit but there is no list of expenses for which you can claim credit.

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Thank you

No there is no requirement for GST registration

As salary is not covered under GST and therefore you are providing taxable service of Rs. 11 lakh which is below the threshold limit of 20 lakh and therefore you dont required registration under GST.

It would be great if you can also provide the reason for adverse rating so that i can improve.

Hi,

- On services, threshold limit for GST registration is Rs.20 lacs and renting of property falls under the definition of services. 

- ITC is available on all the expenses incurred for the taxable supply. 

- In case of second question, you are not required to obtain GST registration.

Thanks

Hello,

You will be entitled to take credit of input tax charged on any supply of goods or services or both which are used or intended to be used in the course or furtherance of his business.

Since you are engaged in the business of providing commercial property on rent, you will be eligible to take credit of input tax paid on goods or services or both used in providing renting services, such as GST on brokerage/commission for real estate brokerage services or GST on maintenance charges, etc.

you will have to check whether input tax paid by you on the supply of any goods or services to you is used in providing renting services and eligible to claim credit, as there is no direct list for input tax that you can claim.

Further, in your second query, since your rental income is below Rs. 20 Lakhs and salary to the director (not fees or commission) is out of GST, you are not required to take GST registration. 

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

Hi,

Hope you are doing well !!

First replying to your second question:

Since you are the owner and renting your property for commercial purposes for an amount less than Rs. 20 lakhs in a year, you are not required to get registered under GST.

Q 1.

As per Section 16 of CGST Act, 2017, every registered person is eligible to take the credit of tax charged on any supply of goods or services which are used or intended to be used in the course or furtherance of its business.

"Eligibility and conditions for taking input tax credit.

16. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person."

Since, in your case,you are engaged in the business of providing its commercial property on rent, thus it is squarely covered under the ambit of term business as defined under CGST Act, 2017 and accordingly eligible to take the credit of such input and input services which are used for the provision of aforesaid taxable services.

Thus, there is no bar in the law with regard to the services provided by your goodself in order to avail the ITC of goods or services which are used for the provision of taxable outward supply.

Hi,

You can claim ITC on all expenses related to providing taxable services.

There is no defined list for the same.

There is no requirement to get GST registration as your rental income is below the exemption limit. 

Hi,

You can take GST credit of all the expenses you incur on property such as renovation expenses, repair and maintenance, fees paid to security agency, any insurance on property etc.