Bar on input tax credit for immovable property: Extent & exceptions

Successive governments in India have addressed themselves to the problem of distortions in the indirect tax structure caused by the cascading effect of tax on tax. The Goods and Services Tax (GST) introduced in 2017 is the culmination of these attempts: however some faultlines remain, which continue to distort the ideal of a tax on value-addition alone. Here I shall look at one major problem, namely, the manner in which the bar on input tax credit for immovable property is formulated and interpreted.

Source Radha Arun

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