Input tax credit— Setion 17(5) of CGST Act— In the instant case, the applicant had filed an application for seeking advance ruling on the following question:-

a) Whether input credit on goods/services received for construction of hotel building is available;

b) Whether input credit on work contract service received for construction of hotel building is available;

c) Whether input credit on goods/services received for construction of banquet hall which is rented further to customer is available;

d) Whether input credit on work contract service received for construction of banquet hall which is rented further to customer is available;

e) Whether the expression “plant & machinery” would include hotel/banquet building' under section 17 and accordingly input credit on work contract service or any goods/service received for construction of such hotel/banquet hall is available;

f) Whether specified goods viz. lifts, sanitary items, underground cables etc. fall under the expression “plant & machinery” & whether input credit on the same and freight paid to GTA on such items under RCM, Repair & maintenance of aforesaid specified goods and Architect services etc. is available.

we are of the view that Lifts, Sanitary items and underground cables etc. being integral parts of a building are immovable properties as these items are attached to building for the permanent beneficial enjoyment of the said building and therefore cannot be termed as “plant and/or machinery”.

As far as availability of input credit on the same and freight paid to GTA on such items under RCM, Repair & maintenance of aforesaid specified goods and Architect services etc. is concerned, we find that Section 17(5)(c)(d) blocks credit of input tax when works contract services are supplied for construction of an immovable property as well as when goods or services or both received by a taxable person for construction of an immovable property where immovable property is not “plant and/or machinery”. Since Lifts, Sanitary items and underground cables etc. are also immovable property therefore input tax credit of works contract service supplied for construction of these items or goods or services or both received for construction of these items together with construction of hotel/banquet hall will also not be available to the applicant.

Held that— i) We refrain ourselves from answering to question no. a) to d) raised by the applicant as the matter is sub-judice.

ii) We hold that Lifts, Sanitary items and underground cables etc. being integral parts of a building are immovable properties. However, we refrain ourselves from answering on the question whether input tax credit these specified goods, GTA service used in relation to the construction immovable property and Architect service used for construction immovable property will be available to the applicant, as the matter is sub-judice.

iii) Input Tax Credit of the GST paid on Repair & Maintenance service of specified goods viz. Lifts, Sanitary items and underground cables etc. is allowed under CGST Act, 2017.