No ITC on payments made to acquire leasehold land rights: GST AAAR Gujarat

In re GACL-NALCO Alkalies & Chemicals Private Limited (GST AAAR Gujarat) The Gujarat Appellate Authority for Advance Ruling (AAAR) upheld the rejection of Input Tax Credit (ITC) claims made by GACL-NALCO Alkalies & Chemicals Pvt. Ltd. The case revolved around ITC eligibility on services utilized for constructing a caustic soda plant on leasehold land. The appellant argued that the plant qualifies as “plant or machinery” and falls outside the restrictions of Section 17(5)(d) of the CGST Act, which blocks ITC for construction of immovable property. However, the AAAR relied on...