Why GST on Renting of Immovable Property – Issue pending before Larger Bench of Supreme Court

S.V.S. Raghavendra Rao – [2021] 133 taxmann.com 300 (Article)

Every Commercial property owner in India is in quagmire due to contradictory provisions on levy of GST on renting of commercial Property and Landed property. The GST law provides that any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services. It is also clear that no GST is payable on supply of Immovable property like land and Building by the owner of the property.

In this article, the author has discussed the issue of applicability of GST on “Renting of Immovable Property” and eligibility of ITC on construction of an immovable property, if done after obtaining GST registration in light of judicial decisions of erstwhile Indirect Tax regime.

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