Input tax credit— Section 16 of CGST Act— The subject appeal has been filed against an order passed by advance ruling authority.

 The appellant is an individual engaged in the activity/supply of leasing out commercial premises for earning lease rental income.

The Appellant in furtherance of his business, along with his spouse, jointly purchased an under construction commercial immovable property. 

The Authority for Advance Ruling passed its order and denied the Input Tax Credit on services of purchase of under construction commercial property received by the appellant for utilizing the same for payment of GST on supply of output service i.e., lease of immovable property. Further the authority ruled that Clause 2(b), 5(b) of Schedule and Section 17(5) (c) are different and distinct provisions under the Act.

Held that— 1. The order passed by the lower authority is upheld.

2. The appellants are not eligible to take input tax credit of GST paid on supply of works contract service for payment of GST on their output service i.e., Renting of immovable property.

The subject appeal is disposed accordingly.