Input credit on Building constraction work

This discussion clarifies whether input tax credit (ITC) can be claimed on materials and services used for constructing buildings that will be leased out. Unfortunately, under Section 17(5) of the CGST Act, 2017, ITC is blocked for goods and services used in constructing immovable property for one's own account. This restriction applies even if these are used in the course of business, with the notable exception of plant and machinery.