The Maharashtra Appellate Authority of Advance Ruling (AAAR) ruled that no Input Tax Credit (ITC) can be claimed on lift installation charges.
The applicant, M/s. Las Palmas Co-operative Housing Society Limited situated is a Co-operative Housing Society.
Appellant is recovering an amount, from each of the society members under various heads such as Service Charges. Electricity Charges, Lift Charges, Ground Rent, Sinking Fund, Repair Fund, Water Charges, Parking Charges, etc., and paying 18% GST on it.
The Appellant is under the process of replacing existing lift of the society for which a Contract has been awarded to M/s. Fujitec India Private Limited. The Appellant is also recovering a separate amount for replacement of lifts from the members, apart from the normal charges as stated above as contribution for installation of new lifts and charging 18% GST on it to the members of the society.
The Appellant is recovering such an amount of contribution for the installation of the new lifts under the separate Tax Invoice.
The Appellant wanted to know about the eligibility of Input Tax Credit on the lift Installation Charges paid to Fujitec.
Therefore, the Appellant filed an application before the AAR, on the issue whether the Applicant/Appellant is eligible for the input tax credit of lift installation charges paid to Fujitec if it is booked as Capital expenditure in their books without availing the depreciation on 18% GST charged by Fujitec.
The AAR held that the erection, commissioning, and installation of the lift under question is immovable property, they went on to decide that the input tax credit in respect of the charges paid to the lift contractor were not admissible to the Appellant in terms of section 17(5)(d) of the CGST Act, 2017.
The AAAR consisting of Sanjeev Kumar and Rajesh Kumar Sharma upheld the AAR’s order and ruled that the Appellant will not be eligible to avail the ITC in respect of the GST paid on lift installation charges paid to the lift contractor, in terms of section 16(2)(b) read with section 17(5)(c) and 17(5)(d) of the CGST Act, 2017.
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