Rotary Car Parking System Is Civil Structure, GST ITC Not Admissible: AAR

The Tamil Nadu Authority of Advance Ruling (AAR) ruled that input tax credit (ITC) is not admissible on rotary car parking systems. Despite being detachable, the rotary car parking system is deemed part of the existing building, falling under additions to immovable property. \r

Therefore, it is ineligible for ITC under Section 17(5)(d) of the CGST/TNGST Acts 2017. The applicant's argument that it enhances their service quality and increases revenue earnings did not sway the ruling. The AAR concluded that the parking system's classification under HSN code 8428 did not exempt it from being considered part of the immovable property for tax credit purposes.