INPUT TAX CREDIT NOT ADMISSIBLE ON CONSTRUCTION OF IMMOVABLE PROPERTY USED FOR BUSINESS

INPUT TAX CREDIT NOT ADMISSIBLE ON CONSTRUCTION OF IMMOVABLE PROPERTY USED FOR BUSINESS

UTTAR PRADESH AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Name: -Tianyin Worldtech India Private Limited

(GST AAR Uttar Pradesh)

Advance Ruling No. UP ADRG 80/2021
Date of Judgement/Order: 28th June 2021

Question:-The Applicant has approached the authority of advance ruling to determine the admissibility of Input Tax Credit of Tax paid on cost proposed to be incurred in relation to activity mentioned? 

Answer: – The Input Tax Credit of Tax paid on cost proposed to be incurred in relation to activity mentioned is not admissible.

This ruling is valid only within the jurisdiction of Authority for Advance Ruling Uttar Pradesh and subject to the provisions under Section 103(2) of the CGST Act, 2017 until and unless declared void under Section 104(1) of the Act.

“The next Major head mentioned at Sl. No. 5 is Mechanical Work wherein ITC availability on Plumbing (Internal and Domestic water distribution supply System), External Sewage System, Internal Sewer and venting system, Gardening water supply system, Sanitary Ware and CP Fitting and Dismantling Work have been sought by the applicant. The Plumbing, External & Internal Sewage system and sanitary fittings are integral parts of building or any other civil structure. Therefore, the ITC of GST paid on such Plumbing, External & Internal Sewage system and sanitary fittings is not available. The ITC on Gardening Water supply system is not admissible as not used in course or furtherance of business and as per restrictions in Section 17(5) of the CGST Act, 2017.”