Denial of ITC on construction of warehouse capitalised in books of accounts

In re Mindrill Systems And Solutions Private Limited (GST AAR West Bengal) The AAR, West Bengal, in the case of Mindrill Systems and Solutions Pvt. Ltd. [TS-287-AAR(WB)-2023-GST dated June 06, 2023] ruled that, Input Tax Credit (ITC) cannot be claimed on construction of immovable property which is capitalised in the books of account. Facts: M/S Mindrill Systems and Solutions Pvt. Ltd. (“the Applicant”) built a warehouse for which it has received inward supplies of goods and services, including work contract services. Additionally, the Applicant has been paying tax on renting services becau...