TaxTMI 
TaxTMI 
2026 (9) TMI 1349
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.... or suppression 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. Ootacamund Gymkhana Club, having place of business at Finger Post, Ooty, The Nilgiris-643006 (hereinafter called as the "Applicant") has registered with GSTIN 33AAACO6966G1ZC 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. 2.1. M/s. Ootacam....
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....plicant claims that this activity is directly connected to the continued use and operation of their golfing facilities and it is therefore an integral part of their business operations undertaken to fulfil regulatory requirements necessary for sustaining their primary business activity. 4. The applicant is under the administrative control of State. The concerned authorities of the Centre and State were addressed to report if there are any pending proceedings against the applicant on the issues raised by the applicant in the ARA application and for comments on the issues raised. Remarks have been received from the State & Centre Authority that there are no pending proceedings on the questions raised in their Advance Ruling Application. 5. Personal Hearing 5.1 The applicant was initially given an opportunity to be heard in person on 17.02.2026 but they requested for postponement and at the next hearing fixed on 27.03.2026, their representative appeared and requested for further postponement. Another personal hearing was fixed on 06.07.2026. 5.2 Shri. M.S. Seshan, Chartered Accountant appeared for the personal hearing as the authorized representative (AR) of M/s. Ootacamun....
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....land purchase is treated as intangible assets since the value of land purchased along with registration charges and incidental expenses incurred even though registered in the name of the company will be surrendered to Government (Forest department) for afforestation purposes. 5.5 The purchased land will not be used by the company for Golfing activities. But the purchase of land surrendered to Government for afforestation purposes has made the Company to use the reserve forest land for golfing activity. Hence, the amount paid towards the land purchase and incidental expenses incurred has to be treated as right acquired by the company to use reserve forest land for golfing activity. This right will be written off in the books of accounts over a period of time equally till the reserve forest land is taken over by the Government. 6. Discussions and Findings: 6.1 We have carefully examined the submissions made by the applicant in their advance ruling application and the submissions made during the personal hearing. We have also considered the issue involved, the relevant facts and the applicant's submission / interpretation of law in respect of question on which the advance rul....
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....redit ledger of such person". We observe that as per Section 16(1) of CGST Act, 2017, any registered person shall be entitled to avail credit on input tax charged on any supply of goods or services or both received by him which are used or intended to be used in the course or furtherance of his business. 6.6 In the instant case, we get to know that the alternate land purchased and handed over is not being utilised by the applicant in the furtherance of his business. The applicant hands over the land to the Forest department for afforestation purposes. We note that the land so acquired and surrendered does not represent a separately identifiable asset of the Company and does not generate independent economic benefits. Also, the land does not continue to be in the possession of the Applicant and hence, the same cannot be held as "being used or intended to be used in the course or furtherance of his business". As this specific asset transfer produces zero taxable revenue or direct outward supply, it breaks the core ITC chain necessary for eligibility. As such, we feel that the Surveying Charges on land purchased and handed over to the Forest department is not available as Inp....
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....for making outward supply of goods or services or both and includes such foundation and structural supports but excludes- (i) land, building or any other civil structures; (ii) telecommunication towers; and (iii) pipelines laid outside the factory premises". As per Section 17(5) (d) of CGST Act, 2017, Input tax credit is blocked on goods or services received for construction of an immovable property on his own account even when such goods or services or both are used in the course or furtherance of business. This Section allows Input Tax Credit in respect of Plant and Machinery, however, as per the Explanation shown above, land is excluded from the Plant & Machinery. In other words, Input Tax Credit is not available for goods or services related to land even when they are used in the course or furtherance of business. 6.8 We find that in the present case, the Applicant engaged a registered vendor (Land Surveyor) to carry out land survey activities aimed at identifying the total forest land utilized by the club for golfing facilities and evaluating suitable alternative land for afforestation. The Land Surveyor had issued 5 GST invoices for Survey cha....