Case Law Details
In re Wago Private Limited (GST AAAR Gujarat)
The GST Appellate Authority for Advance Ruling (AAAR) of Gujarat recently made a significant ruling in the case of Wago Private Limited. This ruling focused on the eligibility of input tax credit (ITC) for expenses incurred on air conditioning and ventilation systems used in the establishment of a new factory. The ruling provides clarity on the application of Section 17(5) of the Central Goods and Services Tax (CGST) Act, 2017, and the Gujarat Goods and Services Tax (GGST) Act, 2017, particularly regarding works contract services and immovable property.
Background and Case Overview
Wago Private Limited, located in Vadodara, Gujarat, sought a ruling from the Gujarat Authority for Advance Ruling (GAAR) to determine the admissibility of ITC on the GST paid for procuring and installing air conditioning and ventilation systems in their new factory. The GAAR ruled against the company, stating that such expenses fall under the category of blocked credits as per Section 17(5) of the CGST Act, 2017. Dissatisfied with this ruling, Wago Private Limited appealed to the AAAR.
Key Provisions and Legal Framework
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