Home Case Index All Cases GST GST + AAR GST - 2019 (10) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (10) TMI 876 - AAR - GSTInput tax credit - Whether input GST credit can be availed by the applicant on the inputs i.e. Electrical Works, Pumps, Pumping systems and tanks, Lighting system, Physical security system and Fire System? - HELD THAT:- Since the applicant is in the business of providing rental commercial space, it is not disputed that the goods or services or both obtained by the applicant are in the course or furtherance of business. Subject to the conditions and restrictions as may be prescribed, they are entitled to take input tax credit on the tax charged on any supply of goods or services or both which are used or intended to be used in the course or furtherance of business as per sub-section (1) of section 16 of the Central Goods and Services Tax Act, 2017. The term construction includes re-construction, renovation, additions or alternations or repairs to the extent of capitalization to the said immovable property. The applicant has admitted that the works of electrical, structural, lighting, physical security and fire-fighting works are in the nature of works contract services and argued that they qualify as eligible credit under section 16 of the CGST Act. 2017. Section 17(5)(c) clearly states that no input tax credit would be available on the tax paid on Works contract services when supplied for construction of an immovable -property (other than plant and machinery) except where it is an input service for further supply of works contract services. It is clear that the items are fixed to the earth by foundation or structural support and are intended to be used “for” making an outward supply of provision of rental services and hence are covered under the definition subject to the exclusions - It is pertinent to note that the items do not have independent existence and are part and parcel of the entire building, a building with infrastructure. It is also seen from the intend of the applicant what is given on rental is the Space with all infrastructure and once these immovable properties come into existence, they get merged into the Common “building space with modern infrastructure and facilities” and hence are excluded from the definition of “plant and machinery” as applicable to section 17(5) of the CGST Act.
|