ITC on construction expense of building

This discussion clarifies whether Input Tax Credit (ITC) can be claimed on building construction expenses when the building is used for rental services. The general consensus is that ITC is not allowed on expenses of a capital nature, as per Section 17(5) of the GST Act. However, if the expenses are revenue in nature, ITC may be permissible. For specific guidance, consulting a Chartered Accountant is recommended.