Can input tax credit be claimed on building construction under GST law? What Supreme Court held

The Supreme Court addressed a critical issue regarding the eligibility for input tax credit (ITC) under the Goods and Services Tax (GST) law concerning construction services. The court ruled that taxpayers are entitled to claim ITC on inputs utilized in the construction of immovable properties, provided the expenses are directly related to taxable supplies. This ruling clarifies previous ambiguities surrounding ITC claims in the context of building and construction, aiming to ensure compliance with GST regulations. The decision reinforces the principle that tax credits should facilitate fair taxation and business operations, preventing undue burdens on taxpayers engaged in construction. The court emphasized the need for a pragmatic interpretation of GST provisions to promote economic growth and compliance among businesses. This judgment is pivotal for the construction sector, ensuring that businesses can recover input taxes and enhancing the overall effectiveness of the GST framework in India.