Goods and Services Tax

ITC on LIFT

Goods and Services Tax – Started By: – ROHIT GOEL – Dated:- 13-3-2018 Last Replied Date:- 1-8-2018 – Dear Team,There is a confusion and difference of opinion regarding allowability of ITC on purchase of lift… The usage of lift will be in factory only for movement of goods and not staff…Is there any difference in opinion if the use of lift is for staff members and not goods… – Reply By MUKUND THAKKAR – The Reply = if are you using the lift for staff members it is covered under the plant facility and lift installation is also covered under WCT. that's why it is not Eligible for ITC.if you are using the for the movement of Raw material than ITC is eligible. other expert view awaited.. – Reply By KASTURI SETHI – The Reply = The good, Lift falls under HSN 8428 1011/8428 1019. ITC is admissible. Not hit by Section 17(5) of CGST Act, 2017, in view of the usage. – Reply By Rajagopalan Ranganathan – The Reply = Sir,In my opinion, if the lift is part and parcel of an establishment whi

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gible for lift. – Reply By SHOBHIT BANSAL – The Reply = Sir, I also agree with the opinion in regards to allowability of ITC on purchase of lift installed in business premises irrespective of the use for staff or goods. ITC allowable. I have another issue in regards to alowability of ITC where output service is Renting of an Immovable property. Here the registered taxable person installed lift in building given on rent. There is a confusion in regards to ITC of LIFT when renting of immovable property is taxable services. Is it covered by clause 'c' of section 17(5) of the CGST Act? Pls clarify – Reply By KASTURI SETHI – The Reply = It is not covered under Section 17(5)(c) of CGST Act. This sub-clause is meant for Works Contract Service and not for Renting of Immovable Property . Hence not relevant. However, your question is worth further examination. – Reply By KASTURI SETHI – The Reply = Lift/escalator is a machine and it falls under HSN 8428 40 00. As a machine and especially

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– Reply By Sushil Baheti – The Reply = Hii wanted to know what is the GST % for lift being used at bunglow / personal premises. Also if individual does not have place to take credit then in that case is the GST exempted? – Reply By rahul jain – The Reply = Sir, I think ITC on the lift is not available. The reference is : No doubt Lift is qualifying as a machine under the HSN list. But what the plain reading of the sec. 17(5) (d) clearly suggests is that any goods or services used for construction of an immovable property, the credit of the same will be blocked. The exception is for Plant & machinery. I interpret the section as if we use any goods for construction of Plant & machinery which is separate that of the other immovable property, then we can claim the credit on the same plus its structural support. If we use lift in the construction of the immovable property such as building etc, the credit seems to be blocked. – Reply By Sushil Baheti – The Reply = Okbut what will be

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