Gujarat High Court Holds Section 17(5)(d) of GST Act Blocked Credit Provisions Inapplicable to Transfer of Leasehold Rights Absent Construction Activity
The Gujarat High Court has ruled that Section 17(5)(d) of the GST Act, which blocks input tax credit for construction of immovable property, does not apply to transactions involving mere transfer of leasehold rights without any construction activity. The Court quashed the show cause notice and directed unblocking of the petitioner’s input tax credit.
