Question

GIDC Industrial plot is on lease for 99 years. Want to transfer the plot. For transferring the Plot need to Pay Transfer fees and penalty for non utilisation . on Transfer fees and Penalty need to pay GST. Whether credit can be taken of this GST paid??

Answer

The ITC of the Input service is available when the input service are used to provide taxable output services.

In present case, the transfer fees is paid in the course of business, therefore ITC of the same will be available.

Now you have to check one thing i.e. consideration you have received from transfer of lease is subjected to tax or not. For this please provide us the detail of transaction you have entered and consideration received for it. (Reply dt.17/01/2019)