Appellate tribunal permits GST input tax credit on showroom interiors if uncapitalised

The Goods and Services Tax Appellate Tribunal held that input tax credit on showroom furnishing and interior work does not fall under the blocking provisions of Section 17(5)(d). Eligibility for this credit depends strictly on whether the tax component is accounted for separately rather than being capitalised as part of the immovable property.

This ruling provides clarity for businesses investing in commercial space fit-outs, distinguishing between capitalised asset costs and separately accounted service outlays. Taxpayers frequently face disputes regarding blocked credits on construction-related goods and services under real estate provisions.

Entities should review their accounting treatment for interior works to ensure compliance with the criteria specified in the order. Tax practitioners must carefully check client asset ledgers before claiming credits on similar renovation projects.