ITC claim on construction of mall

[KARAN VERMA]

Dear Sir

If i construct mall/shops and let out on rent @ 18% GST, then whether i am eligible to claim ITC on payment made to various work contractors for construction of building or any D.G set, A/C plant self purchased.

AI Summary

Debate on Claiming ITC for Mall Construction Costs Under Section 17(5) of the CGST Act, 2017 A discussion on a forum addressed whether Input Tax Credit (ITC) can be claimed for construction costs of a mall, which is then rented out with 18% GST. Multiple contributors highlighted that ITC is generally restricted under Section 17(5) of the CGST Act, 2017, particularly for works contract services. The issue is currently under review by the Supreme Court, following an Orissa High Court judgment, and opinions vary on whether ITC should be claimed pending the court's decision. Some suggest not utilizing ITC until clarity is provided, while others advise caution due to potential legal risks.