2019 (8) TMI 1279 - AAR - GST

Permission for withdrawal of Advance Ruling Application - input tax credit of GST paid on long term lease of industrial plots taken from M/s. Mahindra World City (Jaipur) - HELD THAT - Since the applicant has withdrawn the application, therefore no ruling is given.

Summary

Issues:
- Admissibility of input tax credit of tax paid or deemed to have been paid on long term lease of industrial plots.

Analysis:
The applicant, a registered person, sought an advance ruling on the eligibility to avail input tax credit of GST paid on long term lease of industrial plots. The applicant had purchased industrial plots in Mahindra World City, Jaipur, on long term lease, with GST charged at 18% by the developer. The issue raised by the applicant fell under the ambit of Section 97(2)(d) regarding the admissibility of input tax credit. The applicant was admitted to pronounce advance ruling as the issue was not pending for proceedings or passed by any authority.

Submission and Interpretation of the Applicant:
The applicant purchased industrial plots on long term lease and sought clarification on the eligibility to avail input tax credit of GST paid on the lease premium value of the industrial plots.

Questions on Which the Advance Ruling is Sought:
The main question raised was whether the applicant is eligible to avail input tax credit of GST paid on the long term lease of industrial plots from Mahindra World City, Jaipur.

Personal Hearing:
A personal hearing was granted to the applicant, during which the authorized representatives requested to withdraw the advance ruling application, citing the need for more clarification on the raised issues.

Comments of the Jurisdictional Officer:
The jurisdictional officer expressed that credit of input tax paid on lease money may not be admissible as the applicant did not appear to be engaged in providing supplies that had a nexus with the leased land, as required by Section 16(1) of the CGST Act, 2017.

Findings, Analysis & Conclusion:
During the personal hearing, the authorized representatives requested to withdraw the advance ruling application. Consequently, since the applicant withdrew the application, no ruling was given by the Advance Ruling Authority.

This detailed analysis of the legal judgment highlights the key issues, submissions, questions, comments, and the final ruling given by the Authority for Advance Ruling in Rajasthan.