Authority lacks jurisdiction for GST registration surrender. ITC on repairs limited, but proportionate ITC on services allowed.

The Authority held that it lacked jurisdiction to decide on the surrender of GST registration as it does not fall under Advance Ruling provisions. Input Tax Credit (ITC) on major repairs was disallowed to the extent of capitalization under Section 17(5) of the CGST Act. However, the society was allowed to claim proportionate ITC on input services despite availing exemptions for residential units as per Section 17(2) of the CGST Act, 2017.

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Issues Involved:
1. Surrendering of GST registration.
2. Claiming Input Tax Credit (ITC) on major and minor repairs.
3. Claiming ITC on various services despite availing exemption for residential units.

Detailed Analysis:

Issue 1: Surrendering of GST Registration
Question: Whether the society can stop paying GST and surrender the registration.

Observations and Findings:
- The applicant society's turnover exceeds INR 20 Lakhs, but the monthly maintenance per member is less than INR 7,500.
- The society includes commercial shops, residential flats, and garages.
- According to Section 97(2) of the CGST Act, the question of whether a GST registration should be surrendered does not fall under the purview of Advance Ruling.
- The Authority concluded that it does not have jurisdiction to decide on the surrender of GST registration.

Order: Not answered due to lack of jurisdiction.

Issue 2: Claiming ITC on Major and Minor Repairs
Question: Whether the society can claim ITC on repairs both major as well as minor.

Observations and Findings:
- The applicant society pays GST on major repair work but does not claim ITC due to blocked credit provisions under Section 17(5) of the CGST Act.
- Section 17(5)(c) and (d) disallow ITC on works contract services and goods/services used for construction of immovable property to the extent of capitalization.
- The repair and maintenance activities, being of an immovable nature, fall under these provisions.
- ITC on GST paid for such services is not available to the extent of capitalization.

Order: ITC on GST paid on works contract services received by the applicant will not be available to the extent of capitalization as per Section 17(5) of the CGST Act, 2017.

Issue 3: Claiming ITC on Various Services Despite Exemption
Question: Whether the society can claim ITC on various services either fully or proportionately despite availing exemption available to residential units.

Observations and Findings:
- The applicant provides both exempt and taxable services.
- Section 17(2) of the CGST Act states that ITC should be restricted to the extent attributable to taxable supplies.
- The society can claim proportionate ITC on input services as per the provisions of Section 17(2) and related rules.

Order: The society can claim ITC on input services proportionately as per Section 17(2) of the CGST Act, 2017.

Conclusion:
1. Surrendering of GST Registration: The question is not maintainable under the Advance Ruling provisions.
2. Claiming ITC on Repairs: ITC is not available for major repairs to the extent of capitalization.
3. Claiming ITC on Various Services: The society can claim proportionate ITC on input services despite availing exemptions for residential units.

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