Input Tax Credit (ITC) - availability of inputs to the Assesses ...

Tax Credit Denied for Construction Inputs in Godowns for Rental; AAR Upholds Restrictions Under CGST Act Section 17(5)(d.

March 15, 2024

Case Laws GST AAR

Input Tax Credit (ITC) - availability of inputs to the Assesses when the Godowns constructed by him is entirely meant for renting it out for Commercial purposes to registered dealers - The Authority for Advanced Ruled (AAR) analyzed Section 17(5)(d) of the CGST Act, which clearly states that no ITC is available for goods or services used in constructing immovable property for one's own account. It rejected the applicant's argument that denial of ITC violates Article 14 of the Constitution, stating that legislative intent prevails. - The AAR ruled that the legislative scheme restricts the flow of credit in certain situations, and taxpayers must adhere to these restrictions. Therefore, the AAR held that no Input Tax Credit is available on inputs when godowns are constructed for renting out for commercial purposes.

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Input Tax Credit (ITC) - availability of inputs to the Assesses ...

Tax Credit Denied for Construction Inputs in Godowns for Rental; AAR Upholds Restrictions Under CGST Act Section 17(5)(d.

March 15, 2024

Case Laws GST AAR

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