2026 (5) TMI 1571

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....ority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Tax Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed there under, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions....

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....a hotel building, where such building is functionally indispensable and constitutes the very apparatus for providing taxable hotel accommodation services, restaurant services and banquet services, and where such construction is not undertaken "on its own account" but exclusively for providing taxable outward supplies covered under Schedule II of the CGST Act, 2017? (b) Whether Input Tax Credit is admissible on GST paid on construction and fit-out of areas within the hotel building used for operating a restaurant and banquet facilities, where outward supplies from such areas are taxable under GST? (c) If Input Tax Credit is admissible, whether such credit is required to be apportioned under Section 17(1) of the CGST Act, 20....

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....rs and paid by the Applicant. The inward supplies have been received in the course or furtherance of business and are directly linked with the proposed taxable outward supplies to be provided from the hotel premises. The hotel building along with its restaurant area, banquet facilities and ancillary infrastructure is intended to be used exclusively for providing taxable outward supplies under the GST law. No part of the building is proposed to be used for personal use, self-occupation or any non-business purpose. Further, no portion of the hotel building is intended to be used for exempt supplies. Accordingly, the entire inward supplies used in the construction and fit-out of the hotel building are attributable wholly to taxable bu....

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..... The restaurant area and banquet facilities form an integral and inseparable part of the hotel business. The outward supplies made from such areas are taxable supplies under GST and the inward supplies used for construction and fit-out of the said areas are incurred wholly in the course or furtherance of business. Accordingly, Input Tax Credit on inward supplies attributable to such restaurant and banquet areas is also admissible under the provisions of the CGST Act. In view of the above submissions, the Applicant contends that Input Tax Credit under Section 16 of the CGST Act, 2017 is admissible on GST paid on works contract services and other inward supplies used for construction of the hotel building including restaura....

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....5)(d) of the CGST Act, 2017. Accordingly an enforcement case vide Case ID AD190126001699X, dated 05/01/2026 was created by the jurisdictional authority and the tax payer was asked to reverse ITC as per the provisions of 17(5)(d). 1.11 This authority finds that the questions raised in the application for advance ruling are the same which are pending in the aforementioned proceeding initiated by the jurisdictional authority. By virtue of the proviso to Section 98(2) of the CGST Act, 2017 the authority is debarred from admitting the application for advance ruling where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this act. Had this....