ITC for developers

This discussion explores whether developers can claim Input Tax Credit (ITC) on construction materials for properties they rent out before selling. While Section 17(5)(d) of the CGST Act generally blocks ITC on immovable property, the question arises if renting out constitutes an output supply subject to GST. Initial advice suggests ITC is blocked, but further clarification is sought on whether rental income, taxed under GST, makes ITC claimable. The consensus leans towards reversing previously utilised ITC due to the strict interpretation of the law.