2018 (10) TMI 1050 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (18) G. S. T. L. 308 (A. A. R. – GST) – Input tax credit – CGST & SGST charged in respect of brokerage services for renting of immovable property – outward supply – Whether applicant are eligible to take Input Tax Credit of the CGST & SGST charged by M/S Catalyst Consulting Chennai in respect of brokerage services and adjust the same against output tax payable against Renting of immovable property?
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Held that:- The applicant has received an inward supply of real estate brokerage services for renting of property on a fee basis. Due to the services of Catalyst Consulting Chennai, the applicant was able to make an outward supply of renting of the property to Vantec Logistics India Private Limited. Hence, this inward supply was used in the course of the applicants business. This inward supply rendered by catalyst Consulting is not listed in any of the exceptions mentioned in Section 17 (5) of CGST Act/ SGST Act for a
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nce Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. Adwitya Spaces Private Limited, Administrative office at New No. 57, Second Floor, Bazullah Road, T.Nagar, Chennai- (hereinafter referred to as Applicant or Adwitya ) is engaged in the business of letting out property and is in receipt of rental income. They are registered under GST with GSTIN 33AAOCA6683J2Z6. The applicant has submitted the copy of application in Form GST ARA –
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by M/S Catalyst consulting Chennai falls under the definition of input tax under section 2(62) of CGST Act and they have requested to clarify if input tax credit can be availed on the brokerage fees paid to the property consultant. They have stated that the tax of CGST & SGST paid by them on brokerage charges falls under input tax under Section 2(62) of CGST Act and is not covered under any restrictions under Section 17 (5) (c) or (d) and hence are eligible to take input tax credit. 3.1 The Authorised Representative of the applicant was heard in the matter on 30.05.2018 and 25.07.2018. They stated that they have taken GST registration and started the Company only last year. They have given on rent the commercial property through the brokerage firm, M/s. Catalyst Consulting Chennai. They submitted GSTR-1, 2A and Lease agreement copies. They stated that there is no Purchase Order, contract agreement between Catalyst consulting and them. Only an invoice has been raised. They submitte
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y Catalyst Consulting towards Brokerage charges for warehouse building leased to M/s. Vantec logistics India Private Limited with SAC 997221 of value ₹ 2,32,38,402.00 in which CGST at 9% and SGST at 9% was charged to the applicant. GSTR 3B and GSTR-1 was filed by M/s. Catalyst Consulting Chennai for the month of December 2017 for the amount and screenshots of GSTR 2A of the applicant indicate this transaction is reflecting in the inward supplies. 4.1 The issue before us is to decide on the admissibility of input tax credit of tax paid to M/s. Catalyst Consulting, who have rendered brokerage services to the applicant for leasing out the premises for the applicant to Vantec Logistics India Private Limited, M/s. Catalyst Consulting Chennai raised a bill for the Brokerage Charges alongwith CGST and SGST. 4.2 M/s. Catalyst Consulting Chennai provided brokerage services by identifying a leasee for the commercial property owned by the applicant. As per the invoice raised by Catalyst Con
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sion of sub section (3) & (4) of Section 7 of the Union territory goods and service tax Act. But does not include tax paid under the composition levy. Section 16 (1) of the Act provides for the Eligibility and conditions for taking input credit, as follows: 16. (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. In the subject case, the applicant has received an inward supply of real estate brokerage services for renting of property on a fee basis. Due to the services of Catalyst Consulting Chennai, the applicant was able to make an outward supply of renting of the property to Vantec Logistics India Private Limited. Hence, this in
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