Landmark Supreme Court Ruling on Input Tax Credit for Property Construction
The recent ruling made by the Supreme Court on October 3, 2024, sets a new precedent with respect to the Input Tax Credit (ITC) claims as provided for in the Central Goods and Services Tax Act, particularly ?in Section 17(5)(d). This particular section prohibits the ITC claims on the construction materials that are utilized in the process of construction of ‘immovable property’, but the Court has now given some directions on whether any such immovable properties that are built with an intent to rent or lease out can be considered as ‘plants’ qualifying for tax credits or not.?