The Authority of Advance Ruling (AAR) Madhya Pradesh ruled that the Input Tax Credit (ITC) can be claimed on the lift procured and installed in hotel buildings.
The applicant, Jabalpur Hotels Pvt. Ltd. was established with an objective to construct a Hotel in Jabalpur. The company started construction of the Hotel and completed a major part of its work.
The applicant has sought the advance ruling on the issue of whether 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.
The Authority consisting of its members Manoj Kumar Chobey and Virendra Kumar Jain ruled that he 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.
“The ruling is valid subject to the provisions under section 103 (2) until and unless declared void under Section 104 (1) of the GST Act,” the authority said.
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