In re Bayer Vapi P. Ltd. (GST AAR Gujarat)
Q. Whether the applicant is entitled to take ITC of the CGST & SGST paid by them on the services received from Vapi Enterprise Ltd in the form of transfer of its rights in the leasehold land owned by GIDC in favour of the applicant which is to be used by the applicant in the course or furtherance of its business in terms of the provisions prescribed under the CGST & SGST Act.
A. The applicant is not entitled to take ITC of the CGST & SGST paid by them on the services received from Vapi Enterprise Ltd in the form of transfer of its rights in the leasehold land owned by GIDC in terms of Section 17(5)(d) of the CGST Act, 2017.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, GUJARAT
M/s. Bayer Vapi Private Ltd., Plot No. 306/3, 2nd Phase, GIDC Vapi, GIDC, Valsad, Gujarat 396195 is registered with the department and their GST registration number is 24AABCB2100L1ZA.
2. The applicant, is engaged in the manufacture of chemicals for agriculture & environmental health science applications which are mainly classified into active ingredients & intermediates. The applicant has entered into an MoU on 24.12.2021 with M/s. Vapi Enterprises Ltd [VEL] to transfer leasehold rights in Industrial plot located at Phase 2, GIDC, Vapi, Gujarat 396 195 bearing plot no. 298/1,2/3 & 299 admeasuring 32440 sq mtrs..
3. VEL had entered into a lease agreement with Gujarat Industrial Development Corporation [GIDC] for setting up an industrial plant. The said lease was for 99 years & GIDC had collected an upfront premium & was also entitled to periodical lease rentals. VEL being desirous of vacating the premises intended to transfer the leasehold rights in the said land for the balance period of lease with GIDC ie for 52 years to the applicant.
4. In terms of the said MoU, applicant is required to deposit an advance equivalent to 40% of the total consideration at the lime of signing along with applicable GST; that tax invoice will be issued by VEL on receipt of Final Transfer Order from GIDC. The applicant intends to use the land for setting up/expanding its manufacturing facility for manufacture of chemicals to be used by the applicant in the course or furtherance of its business of manufacturing.
5. The primary reason for filing the application before the authority is to know their eligibility to claim ITC of the GST paid by them to VEL, post receipt of final lax invoices.
