GST ITC Denied on Commercial Building Construction Despite Taxable Rental Output: AAR Tamilnadu

In re Tvl. Super Chips (GST AAR Tamilnadu)  In GST AAR Tamil Nadu, the Authority examined whether input tax credit (ITC) is available on goods and services used to construct a commercial building intended to be rented out, where GST is paid on the rental income. The applicant, engaged in trading snacks and leasing commercial properties, argued that construction for leasing is not “on own account” and relied on the Supreme Court’s functionality test in Safari Retreats. The Authority held that Section 17(5)(d) of the CGST/TNGST Acts blocks ITC on construction of immovable property other ...