ITC AVAILABLE ON LIFT INSTALLED IN COMMERCIAL BUILDING GIVEN FOR RENT

[S.C. WADHWA]

Dear Expert,

We have purchased one lift leving gst and installed in building given on rent for commercial purpose. My query is whether GST paid on Lift in Dec.23 will be available till 30th Sept.24 as we have not show this in any gst return till now. Please give your expert opinion.

REGARDS,

WADHWA

AI Summary

Debate on ITC Eligibility for Lifts in Rented Buildings under GST: Section 17(5)(d) and Functionality Test Considered A discussion forum addressed the eligibility of Input Tax Credit (ITC) on lifts installed in commercial buildings for rent under GST. The original query raised concerns about the availability of ITC for a lift purchased and installed in a rented commercial building. Various experts provided differing opinions, citing relevant sections of the Central Goods and Services Tax (CGST) Act, 2017. Some argued that ITC is not admissible due to the lift being an integral part of the building, thus classified as immovable property under Section 17(5)(d). Others contended that lifts could be considered as 'plant and machinery,' potentially qualifying for ITC if used for outward supply. The recent Supreme Court ruling in the Safari Retreats case was discussed, which emphasized the functionality test to determine if a building or its parts can be classified as a 'plant.' The forum concluded with a consensus that while the Supreme Court ruling provides a framework, the final determination of ITC eligibility would depend on specific facts and circumstances, requiring careful legal interpretation and potential litigation.