Input tax credit— Section 17(5) of CGST Act— The present appeal has been filed the appellant by Unity traders, Jabalpur, against the order of Authority for Advance Ruling.
The Appellant is a partnership firm engaged in providing Clearing & Forwarding Agent Service. As a C&F Agent, the firm stores goods of other company and charges rent for the same. The firm has 2 separate GST Registrations, one for the unit located in Jabalpur (M.P.) &the other for the unit located in Raipur (C.G.).
Questions raised before AAR, are as under: -
1. Whether ITC of GST paid on goods purchased for the purpose of construction & maintenance of Warehouse such as Vitrified Tiles, Marble, Granite, ACP Sheet, Steel Plates, TMT Tor(Saria),Bricks, Cement, Paint and other construction material can be claimed in full?
2. Whether ITC of GST paid on Work contract service received from registered & unregistered Contractor for construction & maintenance contract of building can be claimed in full?
3. Whether ITC of GST paid on goods purchased & works contract service received during the FY 2017-18 for the purpose of construction & maintenance of Warehouse can be claimed in full?
RULING PRONOUNCED BY AUTHORITY FOR ADVANCE RULING (AAR)
1. We hold that no ITC of GST paid on goods purchased for the purpose of construction & maintenance of warehouse such as Vitrified Tiles, Marble, Granite, ACP Sheet, Steel Plates, TMT Tor (Saria), Bricks, Cement, Paint and other construction materialis admissible under section 17(5) of CGST Act, 2017.
2. We hold that no ITC of GST paid on work contract service received from registered & unregistered contractors for construction & maintenance contract of building is admissible under section 17(5) of CGST Act, 2017.
3. We hold that no ITC of GST paid on goods purchased & works contract service received during the FY 2017-18 for the purpose of construction & maintenance of warehouse is admissible under section 17(5) of CGST Act, 2017.
It is undisputed as per the submissions of appellant as well as from the Order of AAR that appellant intends to construct building / warehouse which is immovable property.
Held that—
1. Input Tax Credit of GST paid on goods purchased for the purpose of construction & maintenance of Warehouse such as Vitrified Tiles, Marble, Granite, ACP Sheet, Steel Plates, TMT Tor(Saria), Bricks, Cement, Paint and other construction material cannot be claimed to the extent of capitalisation in terms of clause (d) of section 17(5) of GST ACT, 2017.
2. Input Tax Credit of GST paid on Works contract service received from registered & unregistered Contractors for construction & maintenance contract of building cannot be claimed to the extent of capitalisation in terms of clause (d) of section 17(5) of GST ACT, 2017.
3. Input Tax Credit of GST paid on goods purchased & works contract service received during the FY 2017-18 for the purpose of construction & maintenance of Warehouse cannot be claimed to the extent of capitalisation in terms of clause (d) of section 17(5) of GST ACT, 2017.