Eligibility of input GST in cases where building is constructed for leasing purpose, Goods and Services Tax - GST

[Amit Gopal]

Section 17(5) of the Central Goods and Services Act, 2017 provides that input tax credit in respect of the following shall not be available-

(c) works contract services when supplied for construction of immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;

(d) goods or services or both received by a taxable person for construction of an immovable property (other than plant and machinery) on his own account including such goods or services or both are used in course of furtherance of business;

Query: In case, a builder is developing or constructing a building which would be used for providing on lease after construction. Whether builder would be eligible to take input tax credit of input GST paid on receipt of goods or services for construction of building?

Posts / Replies

[Alkesh Jani]

Sir, sorry to say that ITC would not be available.

[Alkesh Jani]

Sir, in this regards, please refer Section 17(5)(d) of the CGST Act, 2017.