The “Input Tax Credit” is NOT available for project development services under the CGST Act, 2017
The “Input Tax Credit” is NOT available for project development services under the Central Goods and Services Tax Act, 2017. RULING of AAR, Gujrat – M/s. Deendayal Port Trust (erstwhile Kandla Port Trust)
The concern involved in this incident concerns the ‘Input Tax Credit’ under the CGST Act. A port trust that runs a big port in Kandla is the applicant. As part of the Sagarmala plan, under the leadership of the Ministry of Shipping, one of India’s first Smart Industrial Port Cities (SIPCs) in the Gandhidham-Kandla-Adipur Complex is being built to use land resources to build port-based smart cities. For a period of 60 years or more for appraisal in the form of a one-time upfront fee for GST under the Real Estate Service segment (HSN 9972), they can auction land under the SIPC.
The petitioner has demanded an advance ruling as to whether the “Input Tax Credit” is obtainable for the mentioned project development services, such as:-
- Program management consultancy;
- Marketing Consultancy;
- Land leveling and other related works;
- Roads/Highway;
- Water, electricity, & Drainage Infrastructure; and
- Other related works for developing SIPC
RULING
For project implementation services such as Program Management Consultancy, Marketing Consultancy, Land Leveling, and other related works, Highways, Water, Electricity & Drawing Infrastructure and other related works for the implementation of SIPC, i.e., the “Input Tax Credit” is NOT available under the CGST Act, 2017.
for details refer: http://www.gstcouncil.gov.in/sites/default/files/ruling-new/GUJ_AAR_02_2020_11.03.2020_DPT.pdf
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India Financial Consultancy Corporation Pvt Ltd.(IFCCL)
www.caindelhiindia.com
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