Can we take ITC

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This discussion addresses whether X Company, involved in purchasing land for development, rent, and sale, can claim Input Tax Credit (ITC) on GST paid for development charges and construction materials. Generally, ITC is not available for GST paid on land development charges related to immovable property. Further clarification is needed on specific materials purchased for construction.

Dharmender Rangapur

Dharmender Rangapur (Querist)
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07 August 2020 A X company's nature of business is purchasing
1. land and giving for development the same and in future gives for rent.
2. and Sale of land.

My Question is can company can take ITC on bill given by developer and if any material purchased for construction of land.
Please give clarification for the same which ITC can we take and which are not.

Lekhraj sood

Lekhraj sood (Expert)
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07 August 2020 No,ITC can not be availed for the gst paid on land development charges as relating to immovable property.

Dharmender Rangapur

Dharmender Rangapur (Querist)
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07 August 2020 which ITC can be availed by the company . I mean to say that on which the company can take ITC.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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09 August 2020 https://cleartax.in/s/gst-cases-where-input-tax-credit-is-unavailable
https://taxguru.in/goods-and-service-tax/itc-eligibility-works-contract-construction-activities.html
https://taxguru.in/goods-and-service-tax/availability-itc-goods-services-construction-immovable-property.html
https://www.cbic.gov.in/resources//htdocs-cbec/gst/Work%20Contracts%20in%20GST.pdf

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