The applicant is not eligible to input tax credit in respect of inputs/ capital goods used or intended to be used for creation of covered logistics facility space (warehouse) to be rented out for storage purposes.
Authority for Advance Ruling — Eligibility of ITC for GST paid on goods used for creation of covered logistics facility space (warehouse) – The applicant has constructed covered logistics facility space (warehouse) and has entered into an Agreement with a Company engaged in the business of manufacturing, sales and marketing of two wheelers of various models and is desirous of leasing the said warehouse (logistics facility space) for storage of the lessee’s two wheelers. The applicant sought an advance ruling as to whether ITC in respect of inputs/ capital goods used or intended to be used for creation of covered logistics facility space (warehouse) to be rented out for storage purposes be eligible for ITC under the provisions of section 16 and 17 of the Act, 2017; whether ITC in respect of inputs in form of goods and services be eligible if the goods and services are consumed and used in construction of covered logistic facility space when the said ITC would be utilized in order to discharge and pay GST on rent received from tenants of the warehouse.
Held that:- The Hon’ble Authority ruled that the applicant is not eligible to ITC in respect of inputs/ capital goods used or intended to be used for creation of covered logistics facility space (warehouse) to be rented out for storage purposes. Since no credit of ITC in respect of input goods or services consumed and used in the construction of covered logistic facility space is available, there arises no possibility of utilization of the same.
The applicant is not eligible to input tax credit in respect of inputs/ capital goods used or intended to be used for creation of covered logistics facility space (warehouse) to be rented out for storage purposes.
Authority for Advance Ruling — Eligibility of ITC for GST paid on goods used for creation of covered logistics facility space (warehouse) – The applicant has constructed covered logistics facility space (warehouse) and has entered into an Agreement with a Company engaged in the business of manufacturing, sales and marketing of two wheelers of various models and is desirous of leasing the said warehouse (logistics facility space) for storage of the lessee’s two wheelers. The applicant sought an advance ruling as to whether ITC in respect of inputs/ capital goods used or intended to be used for creation of covered logistics facility space (warehouse) to be rented out for storage purposes be eligible for ITC under the provisions of section 16 and 17 of the Act, 2017; whether ITC in respect of inputs in form of goods and services be eligible if the goods and services are consumed and used in construction of covered logistic facility space when the said ITC would be utilized in order to discharge and pay GST on rent received from tenants of the warehouse.
Held that:- The Hon’ble Authority ruled that the applicant is not eligible to ITC in respect of inputs/ capital goods used or intended to be used for creation of covered logistics facility space (warehouse) to be rented out for storage purposes. Since no credit of ITC in respect of input goods or services consumed and used in the construction of covered logistic facility space is available, there arises no possibility of utilization of the same.