ITC Denied on Leasehold Rights as Linked to Construction of Immovable Property: AAAR Tamilnadu

In re Inox Air Products Pvt Ltd (GST AAAR Tamilnadu) The case concerns the admissibility of Input Tax Credit (ITC) under the GST framework in relation to the transfer of leasehold rights over land used for setting up an industrial facility. The appellant, a manufacturer and supplier of industrial and medical gases, entered into an agreement with another entity for the transfer of leasehold rights over a portion of land for the remaining lease period of 72 years. The land, along with existing structures, was intended for setting up an Air Separation Plant (ASP) to manufacture gases. A consider...