Input credit to person renting commercial properties


Please briefly explain why you feel this question should be reported .


Whether Input credit would be available to the person who is engaged in the business of renting of property.

i. Would the nature of property rented shall have any impact on credit availability?

ii. Would there be any impact based on the status of the person say Individual, Firm, Company?

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GST - Input tax credit K Gaurav 3 years 2 Answers 2430 views 0

Answers ( 2 )

  1. taxclinic_team700

    Please briefly explain why you feel this answer should be reported .


    if you received rental income from residential house then you are exempt from GST. but yes, if you received any rental income from commercial purpose then GST would be applicable.

    GST would be applicable if your turnover or rental income exceed the 20 lakhs limit. impact of status doesn’t effect the chargibility of GST.

    for claiming ITC you always  concerned with following points:-

    A registered person will be eligible to claim Input Tax Credit (ITC) on fulfillment of the following conditions:

    Possession of a tax invoice or debit note or document evidencing payment
    Receipt of goods and/or services
    goods delivered by supplier to other person on the direction of registered person against a document of transfer of title of goods
    Furnishing of a return
    Where goods are received in lots or installments ITC will be allowed to be availed when the last lot or installment is received.
    Failure to the supplier towards supply of goods and/or services within 180 days from the date of invoice, ITC already claimed will be added to output tax liability and interest to paid on such tax involved. On payment to supplier, ITC will be again allowed to be claimed
    No ITC will be allowed if depreciation have been claimed on tax component of a capital good
    If invoice or debit note is received after

    the due date of filing return for September of next financial year


    filing annual return

    whichever Is later

    No ITC will be allowed

    9. Common credit of ITC used commonly for

    Effecting exempt and taxable supplies
    Business and non-business activity

    Credit will be allowed according to the RULES


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