TaxTMI 
TaxTMI 
2026 (2) TMI 819
X X X X Extracts X X X X
X X X X Extracts X X X X
....of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the Act) are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act. M/s SUPER CHIPS, having place of business at Building No. 508, 7th Street Extension, Gandhipuram, Coimbatore, Tamil Nadu-641012 (hereinafter called as the "Applicant") has registered with GSTIN 33AAZPH0926M2Z9 under the Goods and Services Tax Act. They have filed this application for advance ruling under Section 97 of the CGST Act, 2017, and corresponding provisions under the Section 97 of TNGST Act, 2017. The Applicant has made a payment of application fees of Rs. 10,000/- under sub-rule (1) of Rule 104 of CGST Rules, 2017 and TNGST Rules, 2017. 2. Statement of relevant facts having a bearing on the questions raised. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t for the purposes of investment allowance. The word 'plant' used in a bracketed portion of Section 17(5)(d) cannot be given the restricted meaning provided in the definition of "plant and machinery", which excludes land, building or any other civil structures. Therefore, in a given case, a building can also be treated as a plant, covered by the expression "plant or machinery" used in clause (d) of the Section 17(5). The question whether a mall, warehouse or any building other than a hotel or a cinema theatre can be classified as a plant within the meaning of the expression "plant or machinery" used in section 17(5)(d) is a factual question which has to be determined keeping in mind the business of the registered person and the role that building plays in the said business. If the construction of a building was essential for carrying out the activity of supplying services, such as renting or giving on 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 the exception carved out by clause (d) of Section 17(5) to sub-section (1)....
X X X X Extracts X X X X
X X X X Extracts X X X X
....inst the applicant on the issues raised by the applicant in the ARA application. 6. Personal Hearing 6.1 The applicant was given an opportunity to be heard in person on 11.11.2025. Shri. Balu Prasanna Haridass, CA appeared for the personal hearing as the authorized representative (AR) of M/s. Super Chips. The AR reiterated the submissions made in their application for advance ruling. 6.2 The AR explained that the applicant is building a Mall for letting it out to various clients such as Lifestyle, Max, etc. Construction of the building is being done as per the contractual agreement between the applicant and M/s. Lifestyle International Pvt Ltd. The applicant has sought for advance ruling as to the eligibility of ITC on goods and services used for construction of a commercial building/Mall which is to be let out to Lifestyle, Max, etc. The AR referred to Hon'ble Supreme Court decision on Safari Retreats Pvt Ltd prescribing functionality test to decide whether the construction of a building is a 'plant' for the purposes of Section 17(5)(d) of CGST Act, 2017 and as such, ITC on goods and services related to such construction would be eligible. The Members referred to the rece....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nce of his business and the said amount shall be credited to the electronic credit ledger of such person." It could be observed from the above, that the most crucial phrase to the entire scheme involving availment of ITC is "used or intended to be used in the course or furtherance of his business". While the said legal provision provides for entitlement of credit of input tax charged on any supply of goods or services or both which are used or intended to be used in the course or furtherance of business, it also comes up with a rider, viz., "subject to such conditions and restrictions as may be prescribed". 7.4 It may be seen that the provisions of Section 17 of the CGST Act, 2017 discusses about the blocked credits. However, the relevant provisions of sub-section (5) to Section 17, which impacts the issue in the instant case, is as given below :- "(5) Notwithstanding anything contained in sub-Section (1) of Section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely; (a) motor vehicles------------------ (b) ------------------------------------ (c) ------------------ (d) ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ises. From the above, it can be inferred that 'plant and machinery' specifically excludes land, building or any other civil structures'. As Mall constitutes a building, the same falls outside the ambit of 'Plant and Machinery'. Hence, we are of the considered opinion that the ITC on inputs and input services used in the construction of a Mall which basically includes a building and other related civil structures, is not available to the applicant. 7.7 It is to be noted here that even the phrase 'other than plant or machinery' that was part of clause (d) of Section 17(5), now stands amended as 'other than plant and machinery', retrospectively with effect from 1.07.2017 onwards, through SI.No.124 of the Finance Act, 2025 (No.7 of 2025) which reads as below :- "124. In Section 17 of the Central Goods and Services Tax Act, in sub-section (5), in clause (d), - (i) for the words "plant or machinery", the words "plant and machinery" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2017; (ii) the Explanation shall be numbered as Explanation 1 thereof, and after Explanation 1 as so numbered, the followin....