ITC on Purchase of Lift by Hotel not available being blocked credit


ITC on Purchase of Lift by Hotel not available being blocked credit

THE AUTHORITY OF ADVANCE RULING

The Question and Ruling as follows :

Input credit on Purchase of Lift would be available to Hotel as it has been used in the course or for the furtherance of business. Input credit on Purchase of Lift would be available to Hotel as it has been used in the course or for the furtherance of business.

RULING

1. In respect of solitary Question, we hold that the input tax credit of tax paid on Lifts procured and installed in hotel building shall not be available to the applicant as the same is blocked in terms of Section 17(5)(d) of the CGST Act 2017, become an integral part of the building.

ITC on Purchase of Lift by Hotel not available being blocked credit
ITC on Purchase of Lift by Hotel not available being blocked credit

2. The ruling is valid subject to the provisions under section 103(2) untill and unless declared void Section 104(1) of the GST Act.

Read Ruling

Tags: Judgement, GSTAdvance Ruling

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  1. Very much inappropriate decision … Lift is like plant and machinery … It is moving ,., mechanical … and not really embedded to the building ,,,May be it cant be taken as part of civil construction as lift will be set up by another supplier , it has another AMC … run on electricity … all the characters of plant and machinery … decision is questionable