ITC on purchase of lift for residential unit and can use and set off against renting of immovable property ?

[RameshBabu Kari]

Dear Experts,

Can we avail ITC on purchase of lift for residential unit and also can we utilise this ITC against rental of immovable property services ?

[Rajagopalan Ranganathan]

Sir,

As per Sl. No. 12 of Notification No. 12/2017- Central Tax (Rate) dated 26.6.2017 "Services by way of renting of residential dwelling for use as residence" is unconditionally chargeable to 'nil' rate of GST. Hence you cannot avail credit of GST paid on lift installed in a residential unit.

[KASTURI SETHI]

I support the views of Sh.Ranganathan Sir. When service is exempt from GST, no question of taking ITC.

[RameshBabu Kari]

Dear Experts,

Thanks for your valuable reply

[vk agarwal]

In any case even if the residential unit was not exempted, credit of lift which is installed in a immoveable property would not have been allowed to be used even if the immoveable property is being used to provide a taxable service. For example credit of input and input services used to construct a mall is not allowed to be taken and used to pay tax on rental services

[raveendra pallipamu]

If the lift used in the business premises for customers then the gst on lift is avalable for gst input tax credit?

AI Summary

Input tax credit on lift purchases not available where residential renting is nil rated, while construction credits are barred. Input tax credit on a lift purchased for a residential unit is not claimable because renting of residential dwellings is nil rated, and ITC is not available for exempt or nil rated supplies. More generally, inputs and input services used in construction or in relation to immovable property are typically excluded from ITC recovery for rental services; by contrast, a lift in commercial premises used for taxable activities may qualify for ITC subject to usual rules and apportionment.