GST ITC on GIDC Transfer Fees and N.U.Penalty

This discussion explores whether Mr. A can claim Goods and Services Tax (GST) Input Tax Credit (ITC) on GST paid for GIDC transfer fees and N.U. (Non-Utilisation) penalties when selling land and buildings to Mr. Y. The key point is whether the sale of the building was subject to GST. If the transfer fees and penalties, including the associated GST, are paid by the buyer as part of the land transfer process, and if the outward supply (sale of building) is taxable under GST, then ITC on these inward supplies may be claimable.