TaxTMI 
TaxTMI 
In case of sale of underconstruction commercial property, the GST rate is 12%. In such can ITC be availed for the construction of the particular commerical Property?.
Thanks in advance
ITC Real estate
18 Nov 2024 
6 Replies 
1598 Views Asked by
Input tax credit entitlement for construction costs on under construction commercial sales depends on works contract characterisation and precedent.
Whether input tax credit is available for construction expenses on sale of an under construction commercial property characterised as a works contract service; builders/contractors charging GST on such supplies may claim input tax credit, while the buyer's entitlement is fact sensitive and influenced by Section 17(5)(d) CGST and the Supreme Court ruling in Safari Retreat Pvt Ltd (2024). (AI Summary)
Whether input tax credit is available for construction expenses on sale of an under construction commercial property characterised as a works contract service; builders/contractors charging GST on such supplies may claim input tax credit, while the buyer's entitlement is fact sensitive and influenced by Section 17(5)(d) CGST and the Supreme Court ruling in Safari Retreat Pvt Ltd (2024). (AI Summary)