GST ITC not allowed in respect of civil during construction of commercial complex: AAR

Case Details: Authority for Advance Rulings, Uttar Pradesh KRBL Infrastructure Ltd., In re - [2022] 138 taxmann.com 93 (AAR- UTTAR PRADESH)

Judiciary and Counsel Details

• • Abhishek Chauhan & Vivek Arya, Member
  • Niranjan Kumar Gupta & Ms. Medini Aggarwal, AR’s for the Appellant.

Facts of the Case

The applicant was in business of constructing commercial complex, renovation, fabrication, furnishing and built out interior works of building for letting them out on rental basis. It filed an application for advance ruling to determine whether it would be allowed to take ITC on expenditure incurred for ‘Civil and Interior Works’ since the property would be further used for letting out to different tenants.

AAR Held

The Authority for Advance Ruling observed that clause (c) and (d) of section 17(5) of GST Act, 2017 restricts ITC in respect of works contract services and goods or services used towards construction of immovable property. Therefore, ITC of GST paid in relation to ‘civil and interior works’ in building and on ‘construction of commercial complex’ would not be admissible.

List of Cases Referred to

• • Eicher Motors Ltd. v. Union of India 1999 taxmann.com 1769 (SC) (para 6)
  • Safari Retreats (P.) Ltd. v. Chief Commissioner of Central Goods & Service Tax [2019] 105 taxmann.com 324/74 GST 500 (Ori.) (para 6)
  • Union of India v. West Coast Paper Mills Ltd. 2004 (164) ELT 375 (SC) (para 17).