ITC on LIFT

[ROHIT GOEL]

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...

AI Summary

Input tax credit on lifts hinges on classification as plant or immovable property, affecting GST credit eligibility and reversals.
ITC on lifts depends on characterization and use: where used as plant, machinery or capital goods in a factory or as an operational machine necessary for taxable supplies, ITC is generally allowable; where the lift is integral to immovable property construction or classified as a building component (for example in rental premises), views differ and credits may be blocked. Taxpayers must observe input entitlement conditions, avoid claiming income-tax depreciation on the tax element of capital goods, and apply applicable GST reversal and adjustment rules for partial or blocked credits.