Input tax credit— Section 17(5) of CGST Act— The present appeal has been filed against the order of Authority for Advance Ruling.

QUESTIONS RAISED BEFORE AAR

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

RULLING PRONOUNCED BY AAR

The Advance Ruling Authority held 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 CGST Act, 2017, become an integral part of the building.

Appellant states that input tax credit on purchase of lifts which are purchased and installed in the hotel should be available as it would be used in the course or for the furtherance of business.

As per the Section 17 (5) of CGST Act, the Input tax credit shall not be available on the goods and services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.

Lift purchase does not qualify as goods but is works contract resulting into an immovable property. High rise buildings' sanctioned plan includes lifts or escalators as fixtures.

Held that— The ITC is not admissible on purchase of Lift as per the Section 17(5)(d) of CGST Act, 2017.