Hi
If we purchase a commercial space with 12% GST. and rented to some business.
Can we get ITC and utilize against rental GST when we get along with rent..
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ITC of GST charged by builder (construction)
Replies (6)
As per My view.,
No... ITC not available
As per sec 17(5) Input credit of Works Contract services related to immovable property is available only the company in further supply of works contract service. Since you are in renting business you are not eligible for input credit
So I can't utilize 12% of GST (Input) which is charged on sale of immovable property on rental GST (Output)
So I (Buyer) can't utilize 12% of GST (Input) which is charged on sale of immovable property with rental GST (Output)
Orissa High Court Case - YES, ITC is available
https://www.caclubindia.com/articles/gst-itc-on-construction-of-immovable-properties-orissa-high-court-38094.asp
Matter is decided by this High court in our favour
matter may go to supreme court
but this is a big logic indeed
Ditto Case
Person is a builder
made a Mall
for giving on rent
High court, said ITC allowed, no problems
So... pls see this link
see the KPMG Tax flaash on this same matter
https://www.in.kpmg.com/taxflaashnews/KPMG-Flash-News-Safari-Retreats-Pvt-Ltd.pdf
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