Block Credit - Goods or Services or both received by a taxable person for construction of an immovable property (except plant and machinery) [Section 17(5)(d) of CGST Act]

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....h goods or services or both are used in the course or furtherance of business. Explanation 1 - For the Purpose of Clause (c) and (d) of section 17(5) of CGST Act, 2017 "Construction" means includes re-construction, renovation, addition or alteration or repairs to extent of capitalization to said immovable property. Explanation 2 - For the Purpose of Clause (d) of section 17(5) of CGST Act, 2017 it is hereby clarified that notwithstanding anything to the contrary contained in any judgment, decree or order of any court, tribunal, or other authority, any reference to "plant or machinery" shall be construed and shall always be deemed to have been construed as a reference to "plant and machinery". [Inserted vide Finance Act,....

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....uction of an immovable property (except plant or machinery) [ Section 17(5)(d)] Goods or 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. Explanation - For the Purpose of Clause (c) and (d) of section 17(5) of CGST Act, 2017 "Construction" means includes re-construction, renovation, addition or alteration or repairs to extent of capitalization to said immovable property. Meaning of Plant and Machinery "Plant and Machinery" means apparatus, equipment and machinery fixed to earth by foundation or structural support that are used f....

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.... * construct on his own account, * is blocked even when such goods used in the course or furtherance of business. Example 2:- B.S. Farms has himself build the marriage hall for which he has received various goods such a cement, steel, sand, tiles, bathroom fitting etc. as inputs and services by architect, labour contractor etc. as input services. he is using the hall to rent out to customers for occasions.  In that case, as per provision mentioned above, * construct on his own account, * is blocked even when such goods used in the course or furtherance of business. No ITC is available on any goods or services received by him for such construction and the same cannot be claimed by him. Important Notification &....

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....n lease or other transactions in respect of the building or a part thereof, which are covered by clauses (2) and (5) of Schedule II of the CGST Act, the building could be held to be a plant. Then, it is taken out of the exception carved out by Section 17(5)(d) to section 16(1). Functionality test will have to be applied to decide whether a building is a plant. . * The expression "plant or machinery" used in Section 17(5)(d) cannot be given the same meaning as the expression "plant and machinery" defined by the explanation to Section 17; * M/S. Mother Earth Environ Tech Pvt. Ltd. - 2021 (7) TMI 1344 - AAR, Karnataka * Qus - Whether the term "other civil structure" used in the definition of "Plant and Machinery" restricts the ....