ITC can't be claimed on purchase of paper blocks laid on land

The Maharashtra bench of the Authority of Advance Ruling has ruled that Input Tax Credit (ITC) cannot be claimed on the purchase of paver blocks laid on land. The applicant is engaged in providing warehousing, storage, and support services to Original Equipment Manufacturers of the automobile industry using its fleet of car carrier vehicles.

The cars are stored in the applicant's stockyard prior to their transit to the respective car dealers. The applicant Company has been collecting and paying applicable GST on storage rentals for these vehicles. The applicant had purchased tax paid Paver Blocks which were laid in the parking area of the land without any attachment to the cart. The objective of laying such blocks is to ensure efficient and safe parking of automobiles of OEMs during the contract period.

The applicant sought an advance ruling to clarify if they could claim ITC under CGST w.r.t taxes to be paid on the purchase of Paver Blocks laid on the land. The AAR ruled that the paver blocks would qualify as immovable property and therefore the Applicant cannot avail ITC.