Input tax credit on GST paid on canteen facility is blocked credit under section 17(5)(b)(i) of CGST Act and inadmissible to applicant – Gujarat AAR

M/s Tata Motors Ltd. [ADVANCE RULING NO. GUJ/GAAR/R/39/2021 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2021/AR/24) (A.A.R. – GST – Gujarat)]

In this case the Authority for Advance Rulings, Gujarat held that section 17(5)(b)(i) of the CGST Act, 2017, sub-clause ending with a colon and followed by a proviso which ends with a semi colon is to be read as independent sub-clause, independent of sec 17(5)(b)(iii) and its proviso [of sub-clause (iii)]. Thereby, the proviso to sec 17(5)(b)(iii) is not connected to the sub-clause of sec 17(5)(b)(i) and cannot be read into it. Hence, input tax credit on GST paid on canteen facility is blocked credit under sec 17(5)(b)(i) of CGST Act and inadmissible to applicant.

To read the complete judgment 2021 Taxo.online 1416