Input Tax Credit — the applicant raised the following queries:

i) Whether the applicant is eligible to avail input tax credit of GST paid on payment of “lease premium charges (one-time charges)” towards land lease for business purpose?

ii) Whether the applicant is eligible to avail input tax credit of GST paid on “annual lease rentals” (recurring) towards supply of land on lease for business purpose?

iii) Whether the applicant is eligible to avail input tax credit of GST paid on “maintenance charges” collected by the lessor?

Held that—
it clearly emerges that all the referred services are received by applicant for construction of immovable property (other than plant & machinery) on their own account. The exclusion clause 17(5)(d) shows that the exclusion is applicable including when such services are used in the course or furtherance of business which is the claim of the applicant. Thus, the referred services in the instant case and in the given facts, squarely fall under the exclusion vide Sec.17(5)(d) and hence ineligible to ITC.
we hold that the impugned services referred by the applicant have been received for construction of immovable property on their own account and therefore input tax credit on those services is barred under the provisions of clause (d) of Sec.17(5).—Daicel Chiral Technologies (India) Private Limited, In Re… [2020] 25 TAXLOK.COM 099 (AAR-Hyderabad)