TaxTMI 
TaxTMI 
2020 (3) TMI 618
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....ctively) on 12.11.2019 by M/s Unity Traders, Jabalpur, M.P. (hereinafter referred to as the Applicant). The applicant registered with GSTN number 23AABFU3009I1ZD. 2. The provisions of the CGST Act and MPGST Act are identical, except for certain provisions. Therefore, unless a specific mention of the dissimilar provision is made, a reference to the CGST Act would also mean a reference to the same provision under the MPGST Act. Further, henceforth, for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE - 3.1 M/s. Unity Traders, Plot No.264, Bye Pass Road, Katangi Crossing, Jabalpur(Madhya Pradesh) (hereinafter re....
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....AL HEARING - Shri Vishal Shrivastava, CA of the applicant appeared for personal hearing on 05.02.2020 and they reiterated the submission already made in the application and attached additional submission which goes as follows,- (i) that the firm being a taxable person is liable to pay CGST as well as SGST in respect of the rent realized from warehouse. Therefore in view of Section 16 of the CGST Act as well as SGST Act and to avoid the cascading effect of various input taxes, the firm being a registered dealer is statutory entitled to avail of the benefit of taking credit of the input tax charged on the supply of goods and various services which are consumed or utilized for the construction of the aforesaid warehouse and set off the same....
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....m of GST revenues to the exchequer on the rentals generated by the building. The denial of input tax credit in such a situation would be completely arbitrary, unjust and oppressive and would be directly opposed to the basic rationale of GST itself, which is to prevent the cascading effect of multi-stage taxation and the inevitable Increase in costs which would have to be borne by the consumer at the end of the day. (iii) That interpretation of Section 17(5)(d) that the ITC not allowed leads to double taxation, i.e. firstly, on the inputs consumed in the construction of the building and secondly, on the rentals generated by the same building. It is also a settled principal of interpretation of tax statutes that interpretation should be ado....
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....oceed to decide the case as under. - 7.2 Vide above application, applicant want clarification on the ITC of GST paid on goods and work contract services purchased/received for construction & maintenance of warehouse which is used for the purpose of renting out on which GST is paid. 7.3 The relevant provision Section 16 and Section 17(5) of the C6ST Act, 2017 is reproduced below:- (16) Eligibility and conditions for taking input tax credit. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furt....
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....t be available on the goods and services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business. The definition of immovable property are as under:- According to section 3(26) of the General Clauses Act, 1882, Immovable property shall include land, benefits to arise out of land and things attached to the earth, or permanently fastened to anything attached to the earth". According to Section 3 of the Transfer of Property Act, 1882, Immovable property means "Immovable property does not include standing timber, growing crops or grass". 7.5 We find that the applicant constr....