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Applicant is not eligible to claim input tax credit of GST paid on input & input services used for construction of commercial immovable property, subsequently used for renting.

Input Tax Credit the applicant, seeking an advance ruling in respect of the following questions.

Whether applicant is eligible to claim input tax credit of GST paid on input & input services used for construction of commercial immovable property, subsequently used for renting.

Held that—
we find that, Section 17(5) (d) provides that no ITC is available in respect of any goods or services received by a taxable person for construction of an immovable property on his own account even if such inputs and input services are used in the course and furtherance of business. In the instant case the applicant has himself built the immovable property for which he has received various goods or services or both and is using the said property for giving the same on rent to his customers. Therefore, as per Section 17(5)(d), no ITC is available on any goods or services received by him for such construction and the same cannot be claimed by him. Thus, the provisions of Section 17 (5)(d) squarely applies in the subject case and thus the applicant cannot avail input tax credit.

we are of the opinion that since the case of M/s. Safari Retreats Pvt. Ltd. is pending with the Hon’ble Supreme Court, has not attained finality. We also find that the Hon’ble High Court has given the relief to the party invoking its writ jurisdiction while categorically holding that they are not inclined to hold Section 17(5)(d) to be ultra vires.—Ashish Arvind Hansoti, In Re… [2020] 22 TAXLOK.COM 132 (AAR-Maharashtra)