- ITC is not available for construction of immovable property for renting out for commercial purposes
- Tamil Nadu AAR ruled that ITC is not available as per Section 17(5)(d) of the CGST Act
- Applicant planned to construct industrial building for renting out as ‘Godowns’
- Applicant estimated GST amount to be around INR 2.5 Crores
- Applicant planned to rent out godowns for INR 40 lakhs per month with GST
- Applicant argued that Section 17(5)(d) is not applicable as they are not constructing in furtherance of business
- Tamil Nadu AAR held that ITC is not available for construction of immovable property for renting out for commercial purposes
- Input tax paid on goods or services for construction of immovable property ‘on one’s own account’ is unavailable
- Taxpayers must adhere to restrictions prescribed in the law regarding ITC
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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