Q. 451 Dealer had taken the land on rent and constructed the shed and flooring for business. Due to accumulated losses in 3-4 years, dealer wants to sale the shed and internal fittings structure. Structure is capitalized as building under Fixed Asset in Balance sheet. Landlord is ready buy the structure. Whether sale of structure which is on land owned by landlord would be chargeable with GST or would be covered under non GST item as immovable building ?

Ans. In the above case, shed and flooring are things attached to the earth, and become part of the land. Hence, the same is not chargeable to GST.

Q. 450 Please provide me more details about composition GST registration relating to technical services ?

Ans. We are glad to answer your query! In terms of provisions mentioned under section 10(2A), eligibility for composition scheme is having aggregate turnover up to INR 50 lakhs in the preceding FY, chargeable at the rate of 6%. The registration procedure is prescribed under section 25 read with rule 8,9,10 is applicable to taxpayers covered under composition levy. Please visit the below link: https://taxo.online/analytical-review/ar-section-25/

Q. 449 An NBFC is under an business of vehicular finance. NBFC is purchasing a car and than it sell as an hire purchase to the individual. After last installment paid of the loan amount, after that ownership of car is than transfer to the individual. But the said transaction is considered as vehicular finance and no gst is charged while transferring ownership of vehicle. Whether it can claim ITC of 50% on such cars purchased ?

Ans. As per section 17(4) read with rule 38 of the CGST rules 2017, the banking sector has the option to avail for every month, an amount of 50% of the eligible input tax credit on the inputs, capital goods and input services in that month and the remaining 50% input tax credit shall lapse. However, the said company or institution shall not avail the credit of: · Tax paid on inputs and input services that are used for non- business purposes · Blocked credit specified u/s 17(5) Further, a restriction of 50% shall not be applicable to the tax paid on supplies made by the bank to any other registered person having the same PAN.