(1) Whether ITC against inward supply of said input/input service used for construction of warehouse can be claimed and utilized to pay tax on the outward supply of services provided by way of renting of said warehouse in case such construction expenses are capitalized in books?

HELD BY AAR Answered in Negative

(2) Whether ITC against inward supply of said input/input service used for warehouse construction can be claimed & utilized to pay tax on the outward supply of services provided by way of renting of said warehouse in case such construction expenses are not capitalized in books?

HELD BY AAR Input tax credit is admissible if such construction expenses are not capitalized in books.

HELD BY AAAR we are of the opinion that in the instant appeal case, the concerned respondent has constructed one warehouse and let it out.

This being a Construction’, will attract the provisions of the clauses (c) and (d) to sub-section (5) of section 17 of the GST Act and not the Explanation part for determining the eligibility criteria for Input Tax Credit.

Thus, the input tax credit for such construction shall not be available to the respondent. The WBAAR Ruling No. 08/WBAAR/2023-24 dated 26.06.2023 is thus modified and the Appeal stands confirmed.