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TMI Blog2020 (1) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... s and input services are used in the course and furtherance of business - In the instant case the applicant has himself built the marriage hall for which he has received various goods such as cement, steel, sand, tiles, bathroom fittings etc. as inputs and services by architect, labour contractor etc. as input services. He is using the hall to rent out to customers for occasions i.e. for furtherance of his business. Therefore, as per section 17(5) (d), no ITC is available on any goods or services received by him for such construction and the same cannot be claimed by him. The input tax paid on the goods/ services received for construction of an immovable property on one s own account is unavailable. The restriction is provided in the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Tamil Nadu Goods and Service Tax Act. M/s. Sree Varalakshmi Mahaal LLP, No. 320, Shri Varalakshmi Divyaa Tower Vivekananda Street New Fairlands, Salem, Tamil Nadu. 636 016. (hereinafter referred as Applicant ) is registered under the GST Act 2017 vide GSTIN No. 33ADGFS2195B1ZB. The applicant is engaged in leasing out the building (Marriage Hall) with all amenities for short term period. The applicant has sought Advance Ruling on the following questions: Whether the Input Tax Credit against purchases of materials construction of building materials can be claimed and utilize to nullify the cascading effect of taxation? The applicant submitted a copy of challan evidencing payment of application fees of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n such goods or services or both are used in the course of furtherance of business. 2.2 The applicant has submitted that in general on a plain reading of Section 17 (5) (d), it is inferred by the authorities that what is contemplated and provided for a particular situation where inputs are consumed in the construction of an immovable property which is meant and intended to be sold. The sale of immovable property post issuance of completion certificate does not attract any levy of GST. Consequently, in such a situation, there is a break in the tax chain and therefore, there is full justification of denial of input tax credit as, on the completion of the transaction, no GST would at all be payable and therefore, no set off of the Inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chief Commissioner of Central Goods and Service Tax and others in W.P. (C) No. 20463/2018 = 2019 (5) TMI 1278 - ORISSA HIGH COURT which allowed the petitioner to take the Input Tax Credit spent on Construction of Building materials (in their case is Mall) towards output tax liability i.e. renting of immovable property and provided a copy of the verdict. 3.1 The applicant was extended a personal hearing on 26.09.2019 and authorized representative of the applicant, Mr. M.Muthu Kumar, appeared for the hearing. They stated that they have constructed a marriage hall which they are currently giving it for rent. They stated that they have procured various input services such as civil works, design work, etc., and goods such as cement, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal state GST authority have submitted a written write up that the applicant is not eligible to avail ITC on the materials purchased and services rendered. The applicant did not have anything further to add. 4. We have carefully considered the submissions made by the applicant in the advance ruling application, the additional submissions made during the personal hearings and the comments furnished by the State Jurisdictional Officer. It is seen from the submissions made by the applicant that the applicant has built a marriage hall at Itteri Road, Meyyanoor, Salem which they lease / rent for occasions on which they charge GST as seen from the invoices. It is seen from the invoices submitted that the applicant has received various ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iage hall for which he has received various goods such as cement, steel, sand, tiles, bathroom fittings etc. as inputs and services by architect, labour contractor etc. as input services. He is using the hall to rent out to customers for occasions i.e. for furtherance of his business. Therefore, as per section 17(5) (d), no ITC is available on any goods or services received by him for such construction and the same cannot be claimed by him. 5.2 The applicant contends that the above provides for denial of credit of input tax paid on goods/ services used in the construction of an immovable property which is sold subsequently only, as there is no GST liability on the sale of immovable property and that in their case the immovable prop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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