GST: Supreme Court to decide Eligibility of ITC for Construction of Immovable Property intending to Let Out [Read Order]

In a significant move, the Supreme Court has admitted the appeal filed by the GST department against the order of the Odisha High Court wherein the High Court held that input tax credit is available in respect of GST paid while constructing the immovable property intending to let out for rent.

The petitioner, M/s Safari Retreats Pvt Ltd, contrasted an immovable property intending to let out the same for rent and claimed that input tax credit can be availed on the same since they are mainly carrying on the business activity of constructing shopping malls for the purpose of letting out the same to numerous tenants and lessees.

It was further contended that huge quantities of materials and other inputs in the form of Cement, Sand, Steel, Aluminium, Wires, plywood, paint, lifts, escalators, Air-conditioning plant, chillers, electrical equipment, special façade, DG sets, Transformers, building automation systems and also services in the form of Consultancy, Architecture, legal and professional, engineering etc. are required for the aforesaid construction purpose However, the revenue department rejected the claim. The bench comprising Chief Justice K S Jhaveri and Justice K R Mohapatra has observed that the very purpose of the Act is to make uniform provision for the levy, collection of tax, the intrastate supply of goods and services, both Central or State and to prevent multi-taxation.

Listing the matter to 29^th September, Justice Indira Banerjee and Justice M M Sundresh pronounced an order that “List on 29.09.2022, at the top of the Board. Written notes of submissions be filed in the meanwhile.”

To Read the full text of the Order CLICK HERE

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