The applicant company was engaged in the business of organizing wedding & other banquet functions on a large scale, from its premises.
It created a temporary structure by using Iron and steel pillars and sheets, pipes, ‘ballies’& angles and tightened up with nuts and bolts.
It filed an application for advance ruling to determine whether the temporary structure i.e. hall or pandal or shamiana built up with Iron/Steel Pillars tight up with Nuts and Bolts specially created for functions would be treated as Movable or Immovable property in pursuance to the GST Law.
The Authority for Advance ruling noted that the terms movable and immovable property had not been defined under the GST Act. In laymen's terms, any goods that can be moved would be a movable property and which cannot be moved would be immovable property.
But as in the definition of real estate contained in the General Clauses Act and the Transfer of Property Act, It was clear that things attached to the earth or permanently attached to anything attached to the earth would be treated as real estate.
Since the structure was erected in the own premises of the applicant company, it clearly suggested that the shamiana/tent/pandal was built/ erected for permanent enjoyment. Consequently, it was held that the structure created by the applicant would be an immovable property for the purposes of GST Law and credit of input tax would not be available.
Head Office:- Plot No 6A, IInd Floor, Opp. Max Hospital, Hasanpur, Patparganj, Delhi-110092
Branch Office:- IInd Floor, SCO-20, Huda Shopping Complex, Saraswati Vihar, Near Sahara Mall, MG Road Metro Station, Gurugram, Haryana-122002