Appeal Case No. 04/WBAAAR/APPEAL/2023

In re: MINDRILL SYSTEMS AND SOLUTIONS PVT. LTD.

Date Issued: 24 January 2024
Source: 2024 (85) G.S.T.L. 104 (App. A.A.R. - GST - W.B.)
Views: 13

Summary

Input Tax Credit - Apportionment of credit and blocked credits - Non-availability of ITC - Construction of immovable property - Respondent-company had constructed a warehouse and had let it out to another company - On respondent’s application for advance ruling, WBAAR held that applicant was not eligible for credit of input tax charged on inward supply of goods and services related to construction of warehouse which was capitalized in books of account, however, where construction expenses were not capitalized in books, claim of ITC was admissible - HELD : Provisions of clauses (c) and (d) to sub-section (5) of Section 17 of GST Act, 2017 clearly states that Input Tax Credit (ITC) is not available in respect of works contract services or goods or services or both received for construction of an immovable property and thus it will be a blocked credit - ITC for such portion of expenses pertaining to reconstruction, renovation, additions, alterations or repairs which are capitalized stands ineligible - Issue of ‘capitalization’ is applicable only in Explanation part to clauses (c) and (d) to sub-section (5) of Section 17 ibid i.e., only when reconstruction, renovation, additions,…