TMI Blog2021 (11) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... ich 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 tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CGST Rules, 2017 and Section 97 of the KGST Act, 2017 read with Rule 104 of the KGST Rules, 2017, in FORM GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Proprietary concern registered under the provisions of Central Goods and Services Tax Act, 2017 as well as Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the CGST Act and KGST Act respectively). The applicant is a poultry Company, engaged in breeding of Parent (Mother Birds) which lay fertile eggs and these eggs are subjected to hatching process through hatching machine and the said offspring is called as Commercial broiler chick is born. 3. The applicant has sought advance ruling in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant wants to construct poultry farm house on immovable property with all necessary facilities. In this regard the applicant wants to buy the materials such as Weigh Bridge, Power Infrastructure like substation and transformers, Material like cement, steel, jelly paint etc., for construction of civil buildings, Auro Water plant, Vehicle Washing System, Fencing Gate , Pressure Washing Systems , Environmental puff panels for poultry sheds 200 KVA Gensets, Power Infrastructure like substation and transformers at the rate of 18% and also procure Equipments which requires at inside the shed such as feeders, drinkers, fans, cooling pads fans, heaters, medicines at the rate of 12% and further requires civil works, electrical works, supply and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pporting document for execution of his poultry farmhouse works on immovable property and requirement mentioned on ARA-01 application. From the submissions made it appears that the applicant has to procure raw materials such as Weigh Bridge, Power Infrastructure like substation and transformers, materials like cement, steel, jelly, paint etc for construction of civil buildings, RO Water plant, Vehicle Washing System, Iron Fencing Gate, Pressure Washing Systems, Environmental puff panels for poultry sheds 200 KVA Gensets, Power Infrastructure like substation and transformers (all at the rate of 18%) and also wants to procure equipment which are required inside the shed such as feeders, drinkers, fans, cooling pads and fans, heaters, medicin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lude standing timber, growing crops or grass; Under the interpretation clause it is also interpreted for attached to the earth attached to the earth means- (a) rooted in the earth, as in the case of trees and shrubs; (b) imbedded in the earth, as in the case of walls or buildings; or (c) attached to what is so imbedded for the permanent beneficial enjoyment of that to which it is attached; 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. 9.4 Thus, the applicant transferring all goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth are used in the course or furtherance of business. And also 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. 9.5 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 @ 9% CGST a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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