In re Kaniska Engineering Industries LLP (GST AAR West Bangal)
The West Bengal Authority for Advance Ruling (WBAAR), comprising Shafeeq S and Jaydip Kumar Chakrabarti, addressed an application filed by KANISKA Engineering Industries LLP. KANISKA Engineering sought an advance ruling on the eligibility of Input Tax Credit (ITC) for inward supplies used in the construction of a warehouse, which they subsequently leased to M/s Whirlpool of India Limited. The constructed warehouse, located at J.L.21, Bangihati, Hooghly, was completed on December 22, 2023, and leased for a monthly rent of Rs. 57,84,009 plus 18% GST. KANISKA had incurred and paid substantial IGST, CGST, and WBGST on various inputs and input services for the construction, including prefabricated steel structures, civil works, and materials like ready-mix concrete.
The core questions posed by KANISKA Engineering were whether ITC could be claimed and utilized for the outward supply of renting services, irrespective of whether the construction expenses were capitalized in their books of accounts. The jurisdictional authorities confirmed that these questions fell under the scope of Section 97(2)(d) of the CGST Act, 2017, concerning the admissibility of input tax credit, and that no related proceedings were pending or decided in other forums. Despite the application being deemed admissible for consideration, KANISKA Engineering Industries LLP failed to appear for scheduled personal hearings on June 19, 2025, and July 4, 2025. Subsequently, the applicant submitted a request to withdraw their application due to non-prosecution, asking for the liberty to file a fresh application later.
