New Delhi, Feb. 19 -- Industry bodies Ficci and Assocham have urged the Finance Ministry to allow real estate developers to claim Input Tax Credit (ITC) under the Central Goods and Services Act (CGST) for commercial assets constructed for leasing purposes.

In their representations, the associations argued that granting ITC would not have a significant revenue impact but would help maintain the credit chain, thereby stimulating growth in the real estate sector and the broader economy.

The demand comes in response to a recent Budget proposal amending the CGST law retrospectively, which experts believe will override a Supreme Court ruling that had earlier permitted ITC claims on leased assets.

Market analysts warn that this move could neg...