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TMI Blog2020 (6) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Sagarmala project. They will auction the land under the SIPC for 60 or more years, for a consideration, in the form of one time upfront premium, liable for GST, under the category of Real Estate Service (HSN 9972). We observe that the applicant is engaged in development of port based smart city i.e. Smart Industrial Port City (SIPC) within Gandhidham-Kandla-Adipur Complex. The said project development is nothing but construction of an immovable property and any project development services or goods or works contract used for construction of an immovable property shall attract the provisions of clauses (c) and (d) under sub-section (5) of Section 17 of the CGST Act, which specifically deny input tax credit in respect of works contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grow by providing better infrastructure facilities along with a supportive environment to thrive in. The smart city will be green field project and DPT earmarked two land parcels it owns for this Development i.e. Location 1 and Location 2. The First Location is in the heart of Gandhidham City and shall be developed as Mixed Use Residential Development spread over 580 Acres of DPT owned Land. This Integrated Development shall have Residential Development (45.22%), Institutional Development including Schools, Colleges Hospitals (7.41 %) and Commercial Retail Development (14.17 %). 11.33% of the total land is to be developed for recreational activities like Sports and Green Parks/ Open Spaces. The Second Location is in close proximity of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ? DISCUSSION FINDINGS 4. We have considered the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing. The issue involved in this case pertains to Input Tax Credit under the Central Goods and Services Tax Act, 2017 (herein after referred to as the CGST Act ). The applicant is a port trust running a major port at Kandla. Under the directions of the ministry of shipping to utilize the land resources with the endeavour for developing port based smart city, they are developing one of India's first Smart Industrial Port City (SIPC) within Gandhidham-Kandla-Adipur Complex as part of the Sagarmala project. They will auction the land under the SIPC for 60 or m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the electronic credit ledger of such person.] 6. It is further observed that sub-section (5) of Section 17 of the CGST Act denies input tax credit in respect of goods and services specified there-under. For ease of reference the same is reproduced as follows:- [(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following , namely:- (a) motor vehicles and other conveyances except when they are used (i) for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or (C) imparting training on driving, fly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business. Explanation . For the purposes of clauses (c) and (d), the expression construction includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property; (e) goods or services or both on which tax has been paid under section 10; (f) goods or services or both received by a non-resident taxable person except on goods imported by him; (g) goods or services or both used for personal consumption; (h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and (i) any tax paid i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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