GST ITC for Construction of Buildings: SC's Verdict

Chaitra Seetharam | Last updated: 11 July 2025

Save Share

Quick Summary

The Supreme Court has delivered a significant ruling allowing businesses to claim Input Tax Credit (ITC) on GST paid for inputs used in constructing commercial buildings like malls and offices. This decision reinterprets Section 17(5)(d) of the CGST Act, suggesting that buildings used for business purposes, such as renting out premises, can be considered 'plant'. Each case will now require a functionality test to determine if the construction was essential for the business activity.

GST ITC for construction of buildings, now it can be claim by businesses treating buildings as "plant," under the CGST Act. Recently, the Supreme Court has opened the doors to claim Input Tax Credit (ITC) on GST paid on inputs used for the construction of commercial buildings like malls, offices

Daily Limit Reached

You have reached your daily limit of 2 Free Articles

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Articles Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

BEST VALUE

2 YEAR PLAN

3,499

(Excl. of GST ₹629)

1 YEAR PLAN

1,999

(Excl. of GST ₹359)

3 MONTHS PLAN

999

(Excl of GST ₹179)

View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

61 Views Comment Share GST Report

About the Author

Chaitra Seetharam

Finance Professional

I write on Income Tax, TDS, ITR filing, banking rules, investment schemes, and financial law updates in India. My articles simplify complex tax provisions, compliance requirements, and policy changes to help taxpayers, professionals, senior citizens, and businesses stay informed and financially aware.

View Articles

Comments :