Eye Share: Denial of ITC on Property Leasing Services – Analysis of Daicel AAR ruling

Recently, Telangana AAR in Daicel Chiral Technologies (India) Private Limited [TS-608-AAR-2020-NT] held the applicant ineligible to avail ITC of GST paid on payment of (i) Lease premium charges, (ii) Annual Lease Rent and (iii) Maintenance charges paid towards lease of land in view of embargo created u/s 17(5) of the GST laws.Advocate Sparsh Bhargava cites that though a simplistic ruling, nonetheless it raises issues on  scope of S...