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Synopsis: The Supreme Court held that if construction of a building is essential for supplying services such as renting out, it could fall into the “plant” i.e. exception to section 17(5)(d) of CGST Act. Functionality test will have to be applied to decide whether building is a plant.
The Tamil Nadu AAR, in the matter of Suswani Foundations (P.) Ltd., held that as per Section 17(5)(d) the CGST Act, 2017 no Input Tax Credit ITC is available in respect of any goods or services received by the Assessee for construction of immovable property on its own account even if inputs and input services are used in course and furtherance of business.