SGST Advance Ruling Authority

GST – Telangana AAR - Leasing of immovable property, admissibility of input tax credit – applicant is in the business of leasing out immovable properties - In the furtherance of his business, applicant purchased a flat and discharged GST on the sale consideration – applicant wishes to use the amount in GSTR-2A as input tax credit to set off his liability arising from his supply of leasing of immovable property service - whether the condition in Sec 17(5)(c) apply to claim of input tax credit when such building is used for further supply in lease of such property – HELD - though the definition of works contract in Sec 2(119) of the CGST Act covers all the construction activities including construction of buildings, however for the purpose of charging Sec 7 of the CGST Act a specific entry in Para 5 of Schedule II is included as a taxation entry for buildings and complexes for sale. This construction of statute cannot be extended to any other provision or section in the Act - Schedule II to Section 7 operates on a different field from Section 17 of the CGST Act - Section 17 is a complete code in itself in as much as it taken within its fold the eligibility and ineligibility of input tax credit for all the supplies received by tax payer - the interpretation of Section 17(5)(c) wherein works contract services are excluded from claiming ITC will include all activities enumerated under Sec 2(119) and this definition does not exclude any species of works contract relatable to any immovable property where transfer of property in goods is involved - the applicant who is purchasing building under an agreement of sale is not eligible to claim Input Tax Credit under Section 17 of the CGST Act

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