https://www.taxtmi.com/forum/issue?id=118009 Where outward supplies are exempt, input tax credit (ITC) is not eligible except in limited scenarios such as exports; taking ITC against exempt supplies is erroneous under Rule 42 and relevant ITC exclusions. Tax authorities may initiate demand proceedings and levy penalties for wrongly availed ITC even if unutilised, with interest rules applying differently to utilised credit. In real estate, periodic reversals under Section 17(2) and rules are required, typically monthly with final reconciliation at project completion. en-us Fri, 24 Jun 2022 13:19:24 +0530 Thu, 23 Jan 2025 15:54:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=118009 Where outward supplies are exempt, input tax credit (ITC) is not eligible except in limited scenarios such as exports; taking ITC against exempt supplies is erroneous under Rule 42 and relevant ITC exclusions. Tax authorities may initiate demand proceedings and levy penalties for wrongly availed ITC even if unutilised, with interest rules applying differently to utilised credit. In real estate, periodic reversals under Section 17(2) and rules are required, typically monthly with final reconciliation at project completion. Discussion-Forum GST Fri, 24 Jun 2022 13:19:24 +0530 https://www.taxtmi.com/forum/issue?id=118009