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No ITC available on Purchase of ‘Rotary Car Parking System’ u/s 17(5)(d), CGST Act: AAAR

Update / Judgement Date

04 Oct 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Corporate ComplianceGST

The Appellate Authority for Advance Ruling (AAAR) ruled that no Input Tax Credit (ITC) is available for the purchase of a rotary car parking system under Section 17(5)(d) of the CGST Act. The AAAR clarified that such purchases fall under blocked credits, making them ineligible for ITC. This decision has implications for businesses investing in infrastructure that is not directly linked to their taxable output services or goods.