Goods and Services Tax

ITC admissible in respect of building used for rental purposes, Concept of Tax Chain : Analysis by KRG Legal: Odisha High Court in the recent case have held that expenditure made on the construction of building for letting out shall be permissible. The moot point before the court was whether section 17(5)(d) of the CGST Act 2017 restricts the admissibility of input tax credit in respect of construction of building used for letting out by the taxpayer. The Court held that the taxpayer was indeed eligible for claiming input tax credit as the said building was used for making outward taxable supply. Concept of Tax Chain: The petitioner pleaded that in their case the tax chain was not breaking and hence ITC should be allowed. As per this case, the concept of continuation of tax chain has emerged to a large extent. It was on this ground that there was no break in the tax chain, court held that the credit shall be allowed in respect of construction of building utilised for t