AAR, No ITC admissible for construction-related supplies and services for factory building: Case of HMSU Rollers (India) Pvt Ltd, AAR Gujarat Ruling Dated 30th April 2025. AAR held that Input Tax Credit (ITC) is not admissible on the goods and services used for constructing an integrated factory building, including a Pre- Engineered Building (PEB) structure designed to support an overhead crane. The authority classified such construction as immovable property, falling under the blocked credit provisions of the GST law. It ruled that no proportionate ITC is admissible for supply of the following goods and services:
— Steel, Cement and other consumables etc., to the extent of their actual usage in the execution of works contract service when supplied for construction of immovable property, in the form of the factory which is an Integrated Factory Building with Gantry Beam, which in turn is used for mounting across the pre-cast concrete beams, poles over which the crane would be operated;
— Installation and Erection Services of the PEB when supplied for construction of immovable property, in the form of the factory which is an Integrated Factory Building with Gantry Beam, which in turn is used for mounting across the pre-cast concrete beams, poles and over which the crane would be operated;
— Other capital goods like rails, electrification, etc. installed or erected for smooth operation of the crane.