Govt examines easing blocked GST credit on construction for own use
The government is examining industry concerns over the denial of input tax credit (ITC) on goods and services used to construct immovable property for its own use, according to senior government official.
ITC is goods and services tax (GST) paid by a business on its purchases. This it can set off against the tax it has to pay on its sales.
The issue is being discussed with states, but no agreement has been reached yet on easing the restriction, the official said at an industry interaction organised by the Bengal Chamber of Commerce and Industry (BCC&I).
“Discussion with states is going on,” the official said, adding that he would not comment further on the matter because of this.
The issue relates to companies being unable to claim GST paid on certain goods and services used to construct immovable assets such as offices, factories, and global capability centres (GCCs).
