Retrospective GST input tax credit amendment to impact commercial realty
The government's retrospective amendment to the Finance Bill 2025 overrides the Supreme Court's ruling from October 2024, disallowing ITC on construction expenses for leased properties. This affects real estate developers by reinstating tax demands and could lead to increased compliance burdens and litigation in the sector.
The government’s proposal to amend the Finance Bill 2025 with respect to input tax credit (ITC) on construction expenses for leased properties is expected to impact real estate developers of commercial properties.
