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Denial of ITC on construction of 'immovable property' under GST - a wholly unjustified move


Denial of ITC on construction of 'immovable property' under GST

I think the exclusion clauses for ITC needs a more elaborate interpretation. The first exclusion clause says the ITC would not be available in case where principal acquires the goods and services for use in construction of immovable property. In such case, it is apparent that principal would be getting the construction for own use and hence, in such case the ITC would not be available.
There should not be any ambiguity for the second exclusion clause. ITC would not be available only in cases where property in goods is not transferred. In case of builder, developers the property in goods do gets transferred, hence, my interpretation is that in such cases, ITC would be available.

Mahavir Jain 14/11/2016

 

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