The resort is the LLP firm & wants to claim ITC on construction material used for constructing resort on its own. Be it cement, steel, chairs, electrical equipment, engineering services etc. The resorts will provide facilities like, restaurant, party garden, meeting halls, swimming coaching etc. Can the firm claim such ITC?

Reply—ITC can be taken for all goods or services or both, if conditions of section 16 of the CGST Act are satisfied, subject to restrictions under section 17 thereof. GST ITC on capital goods except immovable property will be allowed.

ITC is allowed according to the Judgment of the Hon’ble High Court of Orissa in the matter of Safari Retreats Private Limited Versus Chief Commissioner of CGST dated 17.04.2019. The High Court has answered the question raised by the appellant but has not specifically distinguished, (declared) section 17(5) (d) to be ultra-virus to the CGST Act and hence it will be risky to avail the credit of immovable property on the basis of the above Judgment.

Department has preferred an appeal before the Supreme Court.