Case Law Details
In re Tarun Realtors Private Limited (GST AAR Karnataka)
The provision of facilities like transformers, sewage treatment plant, Electrical Wiring and Fixtures, Surveillance systems, D.G. Sets, Lifts, Air Handling Units etc. are sine-qua-non for a commercial mall and hence cannot he considered separate from the building or civil structure. The provision of these are either statutory for a building or defines the nature of the building as a commercial mall. Hence the input tax credit on the inward supplies of goods or services involved in the construction of immovable property which is a civil structure or building is not available to the applicant and hence blocked.
AAAR Ruling-No ITC on goods or services used in construction of shopping Mall for leasing: AAAR
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
1. M/s Tarun Realtors Private Limited, (called as the ‘Applicant’ hereinafter), having GSTIN number 29AACCT1512D1ZS, has filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 and Section 97 of the KGST Act, 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000-00 each under the CGST Act and the KGST Act.
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Would the situation changes, if the plant and machinery etc mentioned above are fixed after the building completion certificate – occupancy certificate- is obtained? Then the department cannot argue it is part and parcel of the structure. They are essential requisites to run the business and not additions to the building.