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Cross-utilisation of ITC among different real estate projects

Simran Katyal (Chartered Accountant) (182 Points)

05 November 2020

Can ITC of one project be utilised in other project, if a company is carrying multiple real estate projects under same GSTIN?
Lets say a project has been completed, but ITC relating to purchases made for such project is still lying un-utilised, can company use it for discharging output tax liability arising out of other project carried on, under same PAN?

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4 Replies

JATINDER KUMAR (Accountant) (3662 Points)
Replied 05 November 2020

Yes, you can

no restrictions

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 06 November 2020

I don't think that one project ITC can be adjusted in payment of Output tax liability of another , even though it's under the same PAN .
As per Faq on Cbec site , the promotor are required keep record of Input ,input services project wise. & if it is in 2 different state then it's 100% that you cannot Adjust ITC of one project in State A with Output Tax Liability of State B

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 09 November 2020

Dear Vishesh

IF YOU ARE CONTRACTOR & NOT THE BUILDER OR DEVELOPER THEN YOU CAN CLAIM ITC OF ONE PROJECT INTO OTHER , BUT THAT TO MAKE SURE THAT BOTH PROJECTS ARE IN SAME STATE.