Advance Ruling No. 123/AAR/2023

In re: SUSWANI FOUNDATIONS (P.) LTD.

Date Issued: 19 December 2023
Source: 2024 (84) G.S.T.L. 292 (A.A.R. - GST - T.N.)
Views: 11

Summary

Input Tax Credit - Credit and blocked credit apportionment - Restriction on availment of ITC - Construction of industrial building - Applicant assessee is constructing an industrial building which is to be rented out as ‘godowns’ for commercial purposes - Assessee will be purchasing cement, steel, other building material and will be engaging architects/consultants for construction of said building - HELD : Section 17(5)(d) of CGST Act, 2017 provided that no ITC is available in respect of any goods or services received by a taxable person for construction of immovable property on his own account even if inputs and input services are used in course and furtherance of business - In instant case, assessee himself built godown for which he has used various goods such as cement, steel, brick etc. as inputs and services by architects, consultant etc. as input services and furthermore, assessee is proposing to rent out to large companies for storing their stocks for future sale i.e. for furtherance of his business - Therefore, as per Section 17(5)(d) ibid no ITC is available on any goods or services by applicant for said construction and same cannot be claimed - Section 17 of Central Goods…