In re Ootacamund Gymkhana Club (GST AAR Tamilnadu)
Summary: The Tamil Nadu Authority for Advance Ruling examined whether Input Tax Credit (ITC) was admissible on GST paid towards land survey charges incurred by M/s. Ootacamund Gymkhana Club in connection with land used for its golf course and alternate land purchased to fulfil afforestation obligations. The applicant, a heritage club engaged primarily in providing golfing facilities and related amenities, used forest land for its golf course and was required to identify and purchase alternate land for afforestation purposes. It engaged a registered land surveyor for surveys covering the existing golf course land and the alternate land and sought ITC under Section 16 of the CGST Act, 2017. The AAR held that ITC was not admissible.
It observed that the alternate land purchased for afforestation was handed over to the Forest Department and was therefore not used or intended to be used by the applicant in the course or furtherance of its business. The Authority further examined Section 17(5) and held that the surveying charges relating to the golf course were connected with construction or development of an immovable property on the applicant’s own account, since development of a golf course involves earthwork, land shaping, turfing, drainage and other permanent works. The survey services were regarded as preliminary and essential services directly linked with such development, resulting in blocked credit under Section 17(5)(d).
Want to Read the Complete Judgment?
You have read the free case summary. Unlock the full judgment, the detailed judicial reasoning and the downloadable PDF, along with every other premium judgment on TaxGuru.
Already subscribed? Log in
One subscription covers the entire premium judgment library, not just this case.
