ITC Denied on Lease Rentals as Land Used for Factory Construction: AAAR Gujarat

In re Agratas Energy Storage Solutions Pvt. Ltd. (GST AAAR Gujarat) The Appellate Authority for Advance Ruling (AAAR), Gujarat, considered an appeal concerning the eligibility of Input Tax Credit (ITC) on GST paid under the Reverse Charge Mechanism on annual lease rentals for land taken on a 50-year lease from the Government of Gujarat for industrial use. The appellant, engaged in manufacturing battery cells for motor vehicles, intended to construct a factory on the leased land and sought clarity on ITC availability in various scenarios, including pre-construction and post-construction periods...