In re Sky Height Enclave Private Limited (GST AAR West Bengal)
The Authority for Advance Ruling, West Bengal rejected an advance ruling application filed by a company engaged in constructing and operating a hotel building after finding that the same issue was already pending before the GST enforcement authorities.
The applicant stated that it was constructing a hotel building at Kali Krishna Tagore Street, Kolkata, for providing hotel accommodation, restaurant, banquet, event-related, and contract food services, all of which were proposed to be taxable supplies under GST. The applicant sought advance rulings on whether Input Tax Credit (ITC) under Section 16 of the CGST Act could be claimed on GST paid on works contract services and other inward supplies used in constructing the hotel building, including restaurant and banquet areas. It also sought clarification on whether ITC, if admissible, would require apportionment under Section 17(1) of the CGST Act.
According to the applicant, the hotel building was being constructed exclusively for business purposes and for providing taxable outward supplies. It argued that no part of the building would be used for personal purposes, exempt supplies, or non-business activities. The applicant contended that the inward supplies, including civil construction, interiors, furnishings, fixtures, and fittings, were directly linked to taxable outward supplies and therefore eligible for ITC under Section 16 of the CGST Act.
