Page 104 - GSTL_16th July 2020_Vol. 38_Part 3

342 GST LAW TIMES [ Vol. 38
ing an outward taxable supply of the same category of
goods or services or both or as part of a taxable compo-
site or mixed supply; and
(iv) travel benefits extended to employees on vacation such as
leave or home travel concession;
(c) works contract services when supplied for construction of an immovable
property (other than plant and machinery) except where it is an input
service for further supply of works contract service;
(d) goods or services or both received by a taxable person for construction of an
immovable property (other than plant or machinery) on his own ac-
count including when such goods or services or both are used in the
course or furtherance of business.
Explanation. - For the purposes of clauses (c) and (d), the expression
“construction” includes re-construction, renovation, additions or al-
terations or repairs, to the extent of capitalisation, to the said im-
movable property;
(e) goods or services or both on which tax has been paid under section
10;
(f) goods or services or both received by a non-resident taxable person
except on goods imported by him;
(g) goods or services or both used for personal consumption;
(h) goods lost, stolen, destroyed, written off or disposed of by way of
gift or free samples; and
(i) any tax paid in accordance with the provisions of sections 74, 129
and 130.]
7. We observe that the applicant is engaged in development of port based
smart city i.e. Smart Industrial Port City (SIPC) within Gandhidham-Kandla-
Adipur Complex. The said project development is nothing but construction of an im-
movable property and any project development services or goods or works contract
used for construction of an immovable property shall attract the provisions of clauses
(c) and (d) under sub-section (5) of Section 17 of the CGST Act, which specifically
deny input tax credit in respect of works contract services or goods and services
used for construction of an immovable property. Therefore the said project de-
velopment services of Programme management consultancy, Marketing Consul-
tancy, Land levelling and other related works, Roads, Water, electricity, & Drain-
age Infrastructure and other related works for developing SIPC are not eligible for
Input Tax Credit under the CGST Act, 2017.
8. In view of the foregoing, we rule as under -
RULING
9. The “Input Tax Credit” shall be NOT be available under the CGST
Act, 2017, on the project development services like Programme management consul-
tancy, Marketing Consultancy, Land levelling and other related works, Roads,
Water, Electricity, & Drainage Infrastructure and other related works for devel-
opment of SIPC i.e. construction of an immovable property.

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GST LAW TIMES  16th July 2020  104