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2021 (11) TMI 433 - AAR - GSTClassification of goods - rate of tax - various items and equipments which are used in the construction of Poultry Farm on immovable property - HSN code on transferred of poultry farm equipment and others involved execution of works on immovable property - Composite supply or not - input tax credit - HELD THAT:- On perusal of the definitions given for immovable property it has been noticed that prime property under the term of “immovable property” is land or earth. Further permanently fastened or attached to land or benefits to arise out of land are also treated as immovable properties - the applicant transferring all goods and service which are narrated in Para 9.1 falls under the purview of the definition of term “composite supply” as per section 2 (30) of the CGST/KGST Act 2017 means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Input tax credit - HELD THAT:- The applicant is constructing poultry farm on immovable property by using above stated input supplies is not eligible to claim Input Tax Credit. As per Section 17 (5) (d), Input Tax Credit shall not be available in respect of goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business - the claim of Input Tax Credit is restricted in terms of Section 17 (2) of the CGST/KGST Act 2017 on goods and service which are used for construction of farm on immovable property. Since the contract is an EPC contract, the activity carried out by the applicant is a composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017 i.e., transfer of Poultry farm including equipments, machineries and other items involved in the execution of the said works. Composite supply of works contract on immovable property for the construction of poultry farm is classified under HSN 9954 and rate of tax at the rate of tax @ 18%, as per serial number 3 of item number (ii) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017.
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