No ITC available on GST paid on replacement of existing lift for maintenance purposes
MAHARASHTRA AUTHORITY FOR ADVANCE RULING
The Question and Ruling are as follows :
1. Whether the Applicant – a Co-operative Housing Society paying Goods and Services Tax (GST) on Maintenance Charges collected from its Members, shall be entitled to claim Input Tax Credit of GST paid on replaceme nt of existing lift/ elevator at its own premises to the vendor registered under the Goo:ls and Services Tax Act for manufacture, supply, installation and commissioning of lift/ elevator?
2. Whether the Input Tax credit, if available; is not covered under blocked credits under the Goods and Services Tax Act?
To summarize, Manufacture, Supply, Installation and Commissioning of Lifts/ Elevators is in the nature of Works Contract activity which results in creation of an immovable property. Hence in view of the above discussions and Explanation to Section 17 of the CGST Act, we are of the opinion that the applicant is not entitled to ITC of GST paid on replacement of existing Lift/Elevator, in its premises.
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