Ques: Our Client has received and advances and it is being forfeited as liquidated damages. Please specify the GST provisions on such transactions

Ans: Liquidated damages are outside the GST ambit. They are not taxable. Rather an advance I believe it must be security deposit.

Ques: What all can the proper officer ask in the name of query? Can he ask for last 3 ITRs, Balance sheet, and bank statements etc. Whether there is any checklist of documents which can be asked by the officers ??

Ans: During ASMT 10 It can not ask for these papers. Refer circular no 2/2022. While in audit and other investigation he can ask For these papers

Ques: Whether ITC on buildings, shops and flats which are used for further renting is available or blocked by way of Section 17(5)?

Ans: No it’s not available. Though in the recent judgement of Supreme Court in the case of safari retreat a functional test was proposed wherein building used as plant ITC will be available but at the same time in this finance bill 2025 the govt proposed to amend the law and treat that credit as blocked