Financial Express-Realty project costs, lease rents likely to rise on GST change
The GST Council’s decision to retrospectively amend the Central Goods and Services Tax (CGST) Act to restrict input tax credit (ITC) on construction services for commercial real estate such as malls, shops, etc, for leasing could push project costs and increase rents, said experts. Developers could also move court against the amendment, experts added.
In a case involving one Safari Retreats, the Supreme Court earlier allowed ITC claims on construction costs for rental properties. However, at the 55th meeting at Jaisalmer , the Council decided to retrospectively amend the Act, reversing the ruling that allowed ITC.
