ITC is not available in relation to construction of immovable property which is further let out for commercial purpose

Last updated: 27 March 2024

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The West Bengal Appellate Authority for Advance Ruling has ruled that Input Tax Credit (ITC) is not available for the construction of immovable property intended for commercial letting. This decision clarifies that such expenses fall under 'blocked credit' as per Section 17 of the CGST Act. The ruling applies even if the property is used in the course of business, such as renting out a warehouse.

Court :
West Bengal Appellate Authority

Brief :
The Hon'ble West Bengal Appellate Authority for Advance Ruling in the case of In Re. Bathula Mahesh Babu [Appeal No. 04/WBAAAR/Appeal/2023 dated January 24, 2024] allowed the appeal filed by the Revenue Department, thereby holding that no ITC is allowed on Input Goods or Services in relation to construction of immovable property which is further let out for commercial purposes.

Citation :
Appeal No. 04/WBAAAR/Appeal/2023 dated January 24, 2024

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1999

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3499

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4999

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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