ITC BARRED ON CIVIL & EXTERNAL WORKS FOR IMMOVABLE PROPERTY CONSTRUCTION UNDER SECTION 17(5)(d), EVEN IF LEASED WITH GST

ITC BARRED ON CIVIL & EXTERNAL WORKS FOR IMMOVABLE PROPERTY CONSTRUCTION UNDER SECTION 17(5)(d), EVEN IF LEASED WITH GST

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title-M/s Indag Rubber Limited

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAR/2019-20/23

Date of Judgment/Order- 21st October 2019

IMPORTANT PARAGRAPHS

• At the outset, we would like to make it clear that the provisions of both the CGST Act and the RGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the RGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / RGST Act would be mentioned as being under the “GST Act”.
• The issue raised by M/S Indag Rubber Limited, SP 86-88, Industrial Area Bhiwadi, Alwar, Rajasthan 301019 (hereinafter called as “the applicant”) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2)(d) given as under:
  d. admissibility of input tax credit of tax paid or deemed to have been paid;
• Further, the applicant being a registered person (GSTIN is 08AAAC10868DIZS as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling.

Para No. 2 QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT

Whether the applicant is eligible to claim credit of the GST charged by vendor at the time of supply of goods and services to it, which are sed for carrying out the following activities for setting up of MRO facility which will be rented out:

1. Civil Work
2. External Developmental Works

RULING

The applicant is not eligible to claim credit of the GST charged by vendor for supply of goods and services to it, which are used for carrying out the activities (Civil Work and External Developmental Works) for setting up of MRO facility