![](https://gstsamadhan.com/assets/logo/new_logo.png)
Safari Retreats (P.) Ltd. v. Chief Commissioner of Central Goods & Service Tax
24-May-2019
Admin
High Court Of Orissa
546 Views
As per the contentions raised by the petitioner, the High Court of Orissa observed the condition imposed as per the provisions of blocked credits for immovable property under the CGST Act, 2017, provides that input tax credit is not available when the immovable property is constructed ‘on his own account’ i.e. the taxable person on whose account the immovable property is constructed. This condition cannot be applied in cases where construction of immovable property is intended for letting out.
In this case, the shopping mall which the petitioner was constructing was neither intended for sale nor on his own account but was ‘intended for letting out’. Therefore, narrow interpretation by the department could not be accepted as the petitioner was retaining the property not for its own purpose but to let out the same.
The High Court of Orissa held that the petitioner would be allowed to set off the input tax credit on the goods/services used in the construction of mall from the GST payable on the rental income received.
Source:https://gstsamadhan.co.in
![](https://gstsamadhan.com/control/uploads/news/file_24May2019043953.jpg)