Can an assessee take ITC on Capital Goods used for constuction of building as well as interior furniture, if the property so construction is used for renting purposes.
1. CAse 1: Renting of Rooms like a Hotel
2. Case 2: Renting of Banquet Hall for marriage purposes.
Your opinion is highly recommended.
Eligibility of ITC on Capital Goods for Building Rentals Limited by GST Section 17(5), Potential Exceptions Noted A query was raised regarding the eligibility of Input Tax Credit (ITC) on capital goods used for constructing buildings and interior furniture when the property is used for renting purposes, such as hotels or banquet halls. The consensus among respondents is that ITC is generally not allowed for capital goods used in building construction due to restrictions under section 17(5) of the GST law. However, ITC may be available for interior furniture if it is movable and not capitalized as part of the building. A specific case, Safari Retreats, which is pending before the Supreme Court, was mentioned as a potential exception. (AI Summary)
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