India's Supreme Court allows real estate companies to claim Input Tax Credits on commercial building construction costs for leasing purposes.

The Supreme Court of India has ruled that real estate companies can claim Input Tax Credits (ITC) on construction costs for commercial buildings intended for leasing. If a building serves essential rental functions, it may qualify as 'plant' under the CGST Act. This decision aims to reduce investment costs and prevent double taxation, benefiting various industries. However, ITC is not available for buildings used solely by the owner. Claims can be made for FY 2023-24 until November 30.

October 03, 2024
7 Articles