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TMI Blog2020 (3) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... th Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act 2017 and the KGST Act 2017. 2. The applicant is engaged in the business of renting of immovable property apart from manufacture and supply of fabric, registered under GST law and procured the following inward supplies that are attributable for renting of immovable property. a) Inward supplies relating to construction of building (i.e. construction service provided by builders, developers & contractor) b) Inward supplies relating to goods & services, which are directly used for construction of building. c) Inward supplies relating to expenses in the form of repairs & maintenance, additions, alterations etc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, which are not sold or intended for sale before issuance of completion certificate. However, this restriction is not applicable where the immovable property is constructed for the purpose of letting out of the same, as the tax chain is not broken and, on the contrary, the construction of the building will results in a fresh stream of GST revenue to the exchequer on the rentals generated by the building. The denial of ITC in such a situation would be completely arbitrary, unjust and oppressive and would be directly opposed to the basic rationale of GST itself, which is to prevent the cascading effect of multi-stage taxation and the inevitable increase in costs which would have to be borne by the customer. 4.4 The applicant further states ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igibility for ITC has been described in Section 16(1) and the benefit of apportionment is subject to Section 17(1) and (2). While considering the provisions of Section 17(5)(d), the narrow construction of interpretation put forward by the Department is frustrating the very objective of the Act, inasmuch as the petitioner in that case has to pay huge amount without any basis. Further, the petitioner would have paid GST if it disposed of the property after the completion certificate is granted and in case the property is sold prior to completion certificate he would not be required to pay GST. But here he is retaining the property and is not using for his own purpose but he is letting out the property on which he is covered under the GST, but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issues involved, on which advance ruling is sought by the applicant, and relevant facts. 8.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 8.3 The applicant contends that they are engaged in the business of renting of immovable property and is discharging the GST on the rental income under the "Renting of Immovable Property" service. They procured different types of inward supplies for construction, repair & maintenance, alterations etc., of the said immovable propert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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