Case Law Details
In re Suswani Foundations Private Limited (GST AAR Tamilnadu)
Introduction: The case of Suswani Foundations Private Limited, seeking Advance Ruling in Tamilnadu regarding Input Tax Credit (ITC) availability under GST for constructing godowns, brings forth critical considerations under Section 17(5)(d) of the CGST Act. This analysis delves into the details and implications of the ruling.
Detailed Analysis
The applicant, Suswani Foundations Private Limited, aims to construct godowns for commercial purposes, intending to rent them out to registered dealers. They seek clarity on whether ITC is available for inputs used in the construction process. The crux of their argument lies in their interpretation of Section 17(5)(d) of the CGST Act, contending that since the godowns serve as the source of income, they should be entitled to claim ITC.
However, the jurisdictional authorities maintain that as per Section 17(5)(d), ITC is not available for inputs used in constructing immovable property for one’s own account, irrespective of whether it’s for furthering business purposes. They emphasize that this includes all goods and services used in the establishment of such property, such as materials like cement, steel, and services provided by architects or consultants.
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