AI Drafter 
TaxTMI 
TaxTMI 
2020 (3) TMI 618
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....eferred to CGST Act and SGST Act respectively) 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 Crossi....
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....of Warehouse constructed by the applicant for letting out. 6. RECORD OF PERSONAL 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....
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....chain is not broken and on the contrary the construction of building will result in a fresh stream 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 buil....
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....FINDINGS - 7.1 We have carefully gone through the application, provisions and submission of the Applicant, we proceed 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 cred....
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....stered person shall entitle for ITC subject to such conditions and restriction as may be prescribed. As per the Section 17(5) of CG5T Act mentioned above, the Input tax credit shall not 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 ....
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....ot only to the applicant only. Further the contention of the Applicant that ITC is admissible as there is no brake of supply chain. We find that there is no provision in law that the Section 17(5)(d) is not applicable and ITC is admissible where there is no brake of supply chain. 7.8 In view of above, it is concluded that the ITC is not admissible on the goods and services received and used in the construction of warehouse used for letting out on rent as per the Section 17(5)(d) of CGST Act, 2017. 8. RULING (Under section 98 of Central Goods and Services Tax Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017) 8.1 We hold that no ITC of GST paid on goods purchased for the purpose of construction & maintenance of Wa....