Input Tax Credit — The issue involved in this case pertains to ‘Input Tax Credit’ under CGST Act. The applicant is a port trust running a major port at Kandla. Under the directions of the ministry of shipping to utilize the land resources with the endeavour for developing port based smart city, they are developing one of India's first Smart Industrial Port City (SIPC) within Gandhidham-Kandla-Adipur Complex as part of the Sagarmala project. They will auction the land under the SIPC for 60 or more years, for a consideration, in the form of one time upfront premium, liable for GST, under the category of Real Estate Service (HSN 9972). The applicant has requested for advance ruling as to whether the “Input Tax Credit” shall be available on project development service?

Held that— The “Input Tax Credit” shall be NOT be available under the CGST Act, 2017, on the project development services like Programme management consultancy, Marketing Consultancy, Land levelling and other related works, Roads, Water, Electricity, & Drainage Infrastructure and other related works for development of SIPC i.e. construction of an immovable property.—Deendayal Port Trust (Erstwhile Kandla Port Trust), In Re… [2020] 22 TAXLOK.COM 121 (AAR-Gujarat)