GST : In case of construction of a hotel, lift becomes an integral part of building and, thus, in terms of section 17(5)(d), benefit of ITC would not be available in respect of taxes paid on purchase of lift
AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH
Jabalpur Hotels (P.) Ltd.
Section 17 of the Central Goods and Services Tax Act, 2017/ Section 17 of the Madhya Pradesh Goods and Services Tax Act, 2017 - Input tax credit - Credit and blocked credits, apportionment of - Applicant has started construction of a hotel - It seeks an advance ruling on question as to whether ITC would be available in respect of taxes paid on purchase of lift as it has been used in course or for furtherance of business - It is undisputed that a lift is not an item that is purchased and sold rather it is a customized mechanism for transportation, designed to suit a particular building - Thus, a lift does not have an identity when removed from building and, it becomes an integral part of building- Whether, on facts, ITC would not be available on lift procured and installed in hotel building as same is blocked in terms of section 17(5)(d), being an integral part of building
Held, yes [Paras 7.7 and 8.1]
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