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Input on gst

29 August 2019

Sir my business is renting immovable property and i have already register in GST act now i want to construction new property for Renting so Can i take input Credit on this New Construction

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5 Replies

Shivam RC (Student) (23683 Points)
Replied 30 August 2019

No you cannot...

ITC on Works Contract is BLOCKED u/s 17(5) of the CGST Act 2017.

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 30 August 2019

you cannot claim ITC on expenses capitalised to Building account, but the expense of Revenue Nature which is not capitalised to building the ITC can be claimed.
(as per explanation under section 17(5))

Uttam (employee) (814 Points)
Replied 01 September 2019

A straight answer to the question would be 'No'. However there is a double taxation involved in this taxation. Assessee is not allowed to take ITC and liable to Pay GST on output supply.

A similar case was taken up by Orissa High court. You can rely on the same and litigate your stand point as you are suffering double taxation.

Pls refer Safari Retreats Private Limited Vs Chief Commissioner of Central Goods & Service tax (Orissa High Court)