GST Input Tax: Mortgagee sale / lease

Key requirements

If the mortgagee chooses and instructs the supplier and contracts to pay, it may claim qualifying GST in its own return even when it recovers the cost from the mortgagor. If the supply is contractually to the mortgagor, the mortgagor normally claims. The administrative concession allows the mortgagee to deduct that tax against the disposal or rental output tax only with proof that it paid and assurance that the mortgagor has not claimed the same amount. The deduction uses supplier invoices addressed to the mortgagor. Separate these two routes in the records rather than selecting the route with the most convenient invoice name. Follow the debt-recovery statement rules for output tax and retain payment and duplicate-claim checks.