Taxability of mandap services

[VIGNESH]

sir. Tax rate for mandap services is 18%,

1. whether ITC on AMC paid on Lift and Air Conditioner claimable?

2. ITC on repair work done to the premises treated as expenses in books is claimable?

3. If food is provided can it be treated as composite and charged @ 5% tax?

[KASTURI SETHI]

Query-wise reply is as follows :-

1. No ITC is admissible on lift. Credit has been denied by different AARs on the ground that lift becomes part of immovable property after installation. ITC on air conditioner is admissible as per  IN RE : WEWORK INDIA MANAGEMENT PVT. LTD. - 2019 (10) TMI 1018 - AUTHORITY FOR ADVANCE RULING, KARNATAKA and in Re :WEWORK INDIA MANAGEMENT PVT. LTD = 2020 (5) TMI 388 - APPELLATE AUTHORITY FOR ADVANCE RULING, KARNATAKA.

2. Yes.

3. Composite undoubtedly.

[Shilpi Jain]

It is suggested that you first check the rate of tax payable. In case of mandap keeper service being an event based catering - it would be an outdoor catering services under GST as per the rate notification

In such case, if it is provided by a person/ at a place - not providing accommodation services with > ₹ 7,500 declared tariff - then there is no choice but to pay GST @5%. In such case no ITC would be eligible.

However, if the rate of tax is to be 18% as per the rate notification, then the ITC of AMC, repair work would be eligble since these are not capitalised.

AI Summary

Input tax credit eligibility for mandap services depends on asset classification and catering rate applicability. ITC for mandap services depends on asset classification and applicable tax rate: ITC on lifts is disallowed as they become part of immovable property, while ITC on air conditioners is accepted; non-capitalised repair and AMC costs are claimable. If the supply is event-based outdoor catering attracting the concessional catering rate, the composite supply treatment may apply but ITC is not available; where the service falls under the standard event service rate, ITC on non-capitalised AMC and repairs is eligible.