HC allows input tax credit under GST regime to realtor making shopping mall

This interpretation was there despite the fact that GST is imposed on rent and lease

The Orissa High Court has resolved an important issue of blocked credit under the goods and services tax (GST) regime for real estate companies constructing commercial spaces for the purpose of letting it on rent or lease. 

The court has allowed input tax credit to a shopping mall construction company. 

Meanwhile, real estate companies moved Delhi High Court over a similar issue.  

The issue resolves around Section 17 (5) (c) and (d) of the CGST Act and similar sections under the respective state GST laws. 
 

The sections disallow input tax credit for goods and services used to build immovable property on own account. 

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