Advance Ruling scope limited to proposed supplies; no ITC ruling for works already completed pending on-site verification.

Whether input tax credit is available for services used to construct foundations and structural supports for plant and machinery was examined against the scope of advance rulings; the Authority applied the principle that advance rulings under the scheme are confined to supplies being undertaken or proposed and do not cover past/completed supplies. Because the works were completed before filing and admissibility/quantum of ITC would require on-site inspection and documentary verification, the Authority declined to rule on ITC admissibility for those completed works.

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Issues: (i) Whether the Applicant is eligible to avail input tax credit (ITC) on input services used for construction of foundation and structural support for plant and machinery installed at the Applicant's factory for manufacture of lyophilized injectables in terms of Section 17(5)(c) of the Central Goods and Services Tax Act, 2017.

Analysis: The Authority examined the application, submissions, supporting documents, and the jurisdictional officer's comments. The Advance Ruling scheme under Section 95-97 contemplates a decision in relation to supplies being undertaken or proposed to be undertaken by the applicant. The material on record, including contractor ledgers and invoices, indicated that the construction of foundations and structural supports had been completed in the financial years 2023-24 and 2024-25 prior to filing of the application. The Authority observed that determining the quantum or admissibility of ITC on completed works would require on-site inspection and verification of books, contracts, measurements and invoices which cannot be undertaken in the advance ruling process for past/completed supplies. Consequently, the question falls outside the scope of an advance ruling which is limited to supplies being undertaken or proposed to be undertaken.

Conclusion: The Authority declined to extend a ruling on the eligibility of ITC for the completed foundation and structural support works because the matter relates to supplies already undertaken and not to supplies being undertaken or proposed to be undertaken; accordingly no ruling on the fiscal merits (ITC admissibility) is given.

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