Surrendering leasehold rights sans construction bars ITC on GST paid.

The appellant was denied input tax credit (ITC) on the Goods and Services Tax (GST) paid for services related to surrendering leasehold rights because no construction activity was undertaken on the leasehold land. The Supreme Court's decision in Safari Retreats established that ITC is available if a building functions as a plant for renting or leasing purposes. However, since the appellant did not construct on the land, despite claiming high utilization for plant and machinery, the GST paid was deemed ineligible for ITC. The appeal was dismissed by the Appellate Authority for Advance Ruling (AAAR). .....

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