Home Case Index All Cases GST GST + AAR GST - 2021 (11) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 884 - AUTHORITY FOR ADVANCE RULING, TELANGANAClassification of supply - deemed service or not - purchasing flats/buildings while they are under construction - immovable property should fall under the definition in clause 5(b) of Schedule II of SGST Act, 2017 or not - inward supply does fall under the exclusion provided in Sec 17 of the CGST Act, 2017 from availing input tax credit (ITC) or not - HELD THAT:- Though the construction of a building is covered by the definition of works contract still there are (2) separate entries in Schedule II which describe the eligibility of immovable property to tax. Both these entries read with Sec 7(1A) make the supply of immovable property taxable under the Act. However, the Schedule II carves out certain types of works contract under clause 5 to be treated differently from the types of works contract enumerated in Entry 6. This does not alter the basic definition of works contract given in Sec 2(119). It is a settled principle of interpretation that while interpreting the provision of taxing statute, a construction which would preserve the purpose of provision should be adopted. Therefore in the very nature of taxation statute the interpretation cannot be absolutely cast upon the logic. The purpose of introducing exceptions in Sec 17 of the CGST Act, 2017 is to distinguish it from other transactions. Wherever the legislature has considered it appropriated to ensure consistency in the working of various provisions and to avoid repugnancy and ambiguity in such places they have clearly enacted such exclusions. Where such clarity of excluding a particular transaction is not clearly mentioned it cannot be inferred by logic. The interpretation of Sec 17(5)(c) wherein works contract services are excluded from claiming ITC will include all activities enumerated under Sec 2(119). And this definition does not exclude any species of works contract relatable to any immovable property where transfer of property in goods is involved. Thus the applicant who is purchasing building under an agreement of sale is not eligible to claim ITC under Sec 17 of the CGST Act, 2017.
|