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.
Input Tax Credit — 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 used for carrying out the following activities for setting up of MRO facility which will be rented out:
a. Civil Work
b. External Developmental Works
Held that :- The applicant's claim that Section 17 (5) (d) deals with unavailability of credit of inputs/ input services in case where the output is not taxable is only one dimension of the law. This is an implicit interpretation which is not the intentional outcome of the said section. The purposive dimension of the said section is blocking of credit for construction of immovable property. It is clear while going through the facts that, the activity has two phases viz. construction of immovable property and leasing of the same for MRO purposes. The question raised by the applicant regarding ITC is restricted with first phase of construction itself. Therefore, contention of the applicant that output supply which will take place post construction is taxable or not is immaterial in determining eligibility of ITC.
The applicant is paying GST on goods and services supplied by M/s. Akanksha Contracts Pvt. Ltd. for construction of MRO facility on the applicant's land. The provisions of Section 17(5)(d) of GST Act, 2017 is clear that if the goods or services are used for the construction of an immovable property, the ITC shall not be available irrespective of the use of the said property. — Indag Rubber Limited, In Re… [2019] 17 TAXLOK.COM 118 (AAR-Rajasthan)
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.
Input Tax Credit — 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 used for carrying out the following activities for setting up of MRO facility which will be rented out:
a. Civil Work
b. External Developmental Works
Held that :- The applicant's claim that Section 17 (5) (d) deals with unavailability of credit of inputs/ input services in case where the output is not taxable is only one dimension of the law. This is an implicit interpretation which is not the intentional outcome of the said section. The purposive dimension of the said section is blocking of credit for construction of immovable property. It is clear while going through the facts that, the activity has two phases viz. construction of immovable property and leasing of the same for MRO purposes. The question raised by the applicant regarding ITC is restricted with first phase of construction itself. Therefore, contention of the applicant that output supply which will take place post construction is taxable or not is immaterial in determining eligibility of ITC.
The applicant is paying GST on goods and services supplied by M/s. Akanksha Contracts Pvt. Ltd. for construction of MRO facility on the applicant's land. The provisions of Section 17(5)(d) of GST Act, 2017 is clear that if the goods or services are used for the construction of an immovable property, the ITC shall not be available irrespective of the use of the said property. — Indag Rubber Limited, In Re… [2019] 17 TAXLOK.COM 118 (AAR-Rajasthan)
- Apr 10, 2024
Advisory: Auto-populate the HSN-wise summary from e-Invoices into Table 12 of GSTR-1 - Apr 08, 2024
CBDT clarifies on media reports claiming special drive to reopen cases with reference to HRA claims - Apr 04, 2024
Functionalities to file commonly used ITRs enabled by CBDT on 1st April, 2024 - Apr 03, 2024
Advisory: Self Enablement For e-Invoicing - Apr 01, 2024
Second highest monthly Gross GST Revenue collection in March at Rs.1.78 lakh crore; Records 11.5% y-o-y growth (18.4% on net basis) - Mar 31, 2024
Time limit for verification of return of income after uploading - Mar 31, 2024
Clarification regarding applicability of new tax regime and old tax regime - Mar 21, 2024
Instruction regarding rectification of assessment orders under Section 161 of DGST Act, 2017 for FY 2017-18 - Mar 18, 2024
Order under section 119 of the Income-tax Act, 1961 - Mar 14, 2024
Advisory on exercising due diligence for issuance of notices under Section 73/74 of Assam GST Act and timely completion of adjudication thereof - Mar 12, 2024
Advisory on GSTR-1/IFF: Introduction of New 14A and 15A tables - Mar 08, 2024
Advisory: Integration of E-Waybill system with New IRP Portals - Mar 07, 2024
Ex-post facto extension of due date for filing Form No. 26QE which was required to be filed during the period 01.07.2022 to 28.02.2023 (pertaining to F.Y. 2022-23) - Mar 06, 2024
Clarifies provisions relating to donations made by a trust / institution to another trust / institution for the purposes of application of income - Mar 05, 2024
CBDT allows certain trusts / institutions to furnish the audit report in the applicable Form No. 10B / 10BB on or before 31st March, 2024 - Mar 02, 2024
Rs.1,68,337 crore gross GST revenue collected during February 2024; records Year-on-Year (Y-o-Y) growth of 12.5% - Feb 28, 2024
Instances of Delay in registration reported by some Taxpayers despite successful Aadhar Authentication in accordance with Rule 8 and 9 CGST, Rules, 2017 - Feb 21, 2024
Advisory: Enhanced E-Invoicing Initiatives & Launch of Enhanced https://einvoice.gst.gov.in portal - Feb 02, 2024
CBDT notifies Income Tax Return Forms for the Assessment Year 2024-25 well in advance for the Assessment Year (A.Y.) 2024-25 - Feb 01, 2024
HIGHLIGHTS OF THE INTERIM UNION BUDGET 2024-25 - Feb 01, 2024
SUMMARY OF THE INTERIM UNION BUDGET 2024-25 - Feb 01, 2024
THE FINANCE BILL, 2024 - Jan 31, 2024
Rs.1,72,129 crore gross GST revenue collected during January 2024; records 10.4% Year-on-Year growth - Jan 23, 2024
Circular No. 1/2024 Circular explaining the provisions of the Finance Act, 2023 - Jan 23, 2024
Advisory for furnishing bank account details by registered taxpayers under Rule 10A of the Central Goods and Services Tax Rules, 2017
- Apr 22, 2024
Section 67: Power of Inspection, Search and Seizure - Apr 18, 2024
Exemption on Sale of Agricultural Land Under Section 54B - Apr 15, 2024
Physical Verification in GST Registration: An In-depth Analysis - Apr 12, 2024
Capital Gains on Sale of Agricultural Land - Apr 09, 2024
Important Article - From Taxation to Empowerment: Examining the Legal Landscape for Women`s Hostels Under GST Exemption in Mookambikaa Ladies Hostel V. Union of India and Ors. Along the Horizon of Women Empowernment by Dr B Ramaswamy - Apr 08, 2024
Credit and Debit Notes and Section 16(4) - Apr 02, 2024
Section 132: Search And Seizure Under Income Tax Act, 1961 - Mar 30, 2024
Managing Input Tax Credit (ITC) Transitions and Reversals in GST - Mar 28, 2024
Section 35: Scientific Research - Mar 26, 2024
Untangling the Knots: A Closer Look at GST Refund Issues - Mar 22, 2024
Whether Speculative or Not - Mar 19, 2024
Can DRC-01 Be Issued for Claim of Interest Only - Mar 15, 2024
Deductions Available to Salaried Persons - Mar 07, 2024
Understanding Input Tax Credit in Special Circumstances under the GST Act - Mar 05, 2024
TDS u/s 194I - Mar 01, 2024
Comprehensive Analysis of Section 67 of the CGST Act - Feb 26, 2024
Audit by Tax Authorities (Section 65) & Special Audit (Section 66) - Feb 20, 2024
Unlocking GST Insights: Navigating Advance Rulings - Feb 19, 2024
Disallowance in case of outstanding payment of micro and small enterprises (in Hindi) - Feb 12, 2024
Exemption from Capital Gains for Individuals and HUFs - Feb 10, 2024
Exemption from Capital Gains for all assesses - Feb 08, 2024
No interest if credit is available in Eletronic Cash Ledger - Madras High Court`s Landmark Judgment on Eicher Motors Ltd. by CA Kushagra Mathur - Feb 05, 2024
E-Way Bill System: Transforming Goods Movement in the GST Era - Feb 05, 2024
Deciphering Section 45(5) of the Income Tax Act, 1961: Capital Gain Implications in Compulsory Acquisitions - Feb 02, 2024
Transfer of Business to the Successor on Death of Proprietor: A Comprehensive Guide on GST
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