ThynkTax /Tax Reference /Case Laws /Transtonnelstroy - Section 17(5)

Transtonnelstroy - Section 17(5)

High Court·2020·GST
Facts

ITC denied under Section 17(5) on goods used for construction of immovable property.

Issue

Whether items used as plant for taxable output (plant being "movable" in nature) are blocked?

Held

Plant used for taxable output is not "immovable property" for 17(5)(d); ITC allowable.

Ratio

Plant test predates Safari Retreats - confirmed functional approach to 17(5)(d).

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