In put tax paid on construction of Convention Halls

[Ravikumar Doddi]

Dear sir,

Our applicant has constructed a convention Hall and paid a ₹ 1 Cr of Input tax on Construction of shed and other Material which is form part of Immovable property, will they eligible for ITC and can it be adjustable to out put tax. Earlier I read about ITC on construction of Hall which is let out for commercial purpose. Kindly guide us.

AI Summary

Input Tax Credit on Convention Hall Construction Denied Under GST Act, Section 17(5); Advance Ruling Recommended for Clarity. An applicant inquired about the eligibility for Input Tax Credit (ITC) on the construction of a convention hall under the Goods and Services Tax (GST) framework. Three responses were provided. The first response stated that ITC is not available due to restrictions under Section 17(5) of the GST Act. The second response concurred, emphasizing adherence to the Act over case law. The third response suggested seeking an advance ruling for clarity, noting that if Section 17(5) restricts credit claims on construction materials and services, such claims will be disallowed by authorities.