GST Paid on Maintenance Charges by Co-operative Housing Society, not eligible to claim ITC in the cases of Replacement of Existing Elevator: AAR [Read Order]

The Maharashtra Authority of Advance Ruling (AAR) on an application filed by the applicant held that Goods and Service Tax (GST) paid by any co-operative housing society on the maintenance charges, which is paid by its members are not eligible to claim the Input Tax Credit (ITC) in the cases of the replacement of existing elevator at its own premises.

The applicant is a Co-operative Housing Society which is registered under the Maharashtra Co-operative Housing Society Act. The Co-operative Housing Society is planning to change the existing lift or elevator in its premises and the vendor of the lift or elevator is registered under the Goods and Service Tax (GST) Act for the purpose of supply, manufacture, installation, and commission of lift or elevator.

Therefore, the question raised by the applicant was whether the applicant which pays the Goods and Service Tax (GST) on all the maintenance charges received from its members is eligible to avail Input Tax Credit (ITC) in the case where the applicant is planning to replace the existing elevator or lift by the vendor who is registered under Goods and Service Tax (GST) Act?

Maharashtra Authority of Advance Ruling (AAR) comprising of Ms. P. Vinitha Sekhar, Additional Commissioner of Central Tax, and Shri A. A. Chahure, Joint Commissioner of State Tax while taking into consideration the decision of the Supreme Court in the cases of Triveni Engg. Industries Ltd. vs. C.C.E. and Quality Steel Tubes (P) Ltd. vs. C.C.E., U.P. held that Goods and Service Tax (GST) paid by any co-operative housing society on the maintenance charges, which is paid by its members are not eligible to claim the Input Tax Credit (ITC) in the cases of the replacement of existing elevator at its own premises. The reason behind such decision was that after the assembling things in the erection of the building those things become the immovable property and immovable property can not be subjected to excise under the heading Tariff which is claimed by the revenue.