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

Input tax credit availability for lifts in rented commercial buildings turns on plant-or-machinery character and functionality test.
The central issue is whether ITC on GST paid for a lift installed in a rented commercial building is blocked as part of immovable property or is allowable because the lift qualifies as plant or machinery or a separately identifiable asset used to make outward supplies. Opinions diverge: some authorities and rulings treat lifts as integral to the building and deny credit; others rely on statutory definition, accounting treatment, contractual terms and the functionality of the asset to support ITC. Recent Supreme Court guidance applying a functionality test may expand circumstances in which ITC can be sustained, but entitlement remains fact-sensitive and advisedly supported by documentation and specialist advice.