Advance Ruling - Input Tax Credit - Following question is raised before the Authority for Advance Ruling :- Whether Input Tax Credit is allowed for construction of shed using pre-fabricated technology?

Authority For Advance Ruling, Telangana held that :- Applicant is constructing a Pre fabricated shed (‘PFS’) on land and it is intended to be used as a permanent structure for the purpose of conducting business, which has beneficial enjoyment of the land on which it is being built. The applicant intends to use technology, for the construction of the ‘PFS’, which involves the application of pre-fabricated structures and also civil work for supporting the pre-fabricated structure and developing the RCC platform of the ‘PFS’. If not for the purpose of beneficial enjoyment by way of conducting business on the RCC platform, the ‘PFS’ has no separate existence. The ‘PFS’ being constructed is, therefore, an immovable property and the input tax credit is not admissible on the inward supplies, which may include Works contract services, for its construction, as the credit of such tax comes under category of blocked credits as per section 17(5)(d) and section 17(5)(c) of the CGST/TGST Act’ 2017.