Goods and Service TaxArticle·22 April 2026
ITC on lease denied
By J the App
Executive Summary
• ITC on leasehold rights: Denied.
• Core reasoning: Lease service forms part of construction cost of immovable property (ASP).
• Plant & Machinery argument: Rejected.
• Movability argument: Rejected; ASP treated as immovable property.
• Outcome: Section 17(5)(d) applies → ITC blocked.
Issues for Determination
1. Whether lease of land constitutes an input service “for construc...
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