GST : No Input credit on Construction of Warehouse even on pre-fabricated technology:AAR-West Bengal

• The applicant, supplying warehousing services was constructing a warehouse on leasehold land, using pre-fabricated technology. According to the applicant, it could be dismantled and reconstructed at a different location. He sought a ruling on whether the input tax credit was admissible on the inward supplies for construction of the said warehouse.

• The applicant is constructing a warehouse that is intended to be used as a permanent structure, and associated with beneficial enjoyment of the land on which it is being built. The technology used for the construction of the warehouse involves the application of pre-fabricated structures and also civil work for supporting the pre-fabricated structure and developing the floor of the warehouse. The warehouse cannot be conceived without beneficial enjoyment of the civil structure embedded on earth. The warehouse cannot be conceived without beneficial enjoyment of the civil structure embedded on earth. The warehouse being constructed is, therefore, an immovable property, and the input tax credit is not admissible on the inward supplies for its construction, as the credit of such tax is blocked under section 17(5)(d).

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