TaxTMI 
TaxTMI 
2019 (5) TMI 248
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....99P1ZL as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. 1. SUBMISSION AND INTERPRETATION OF THE APPLICANT: a. The applicant is a five star deluxe heritage hotel having its registered office at Bhawani Singh Road, Jaipur, Rajasthan engaged in hospitality business operated under the brand name Taj group. The Applicant is registered under GST (GSTIN) with registration number 08AAACH6899P1ZL. b. Presently, it is providing and is registered under the following services: (a) Short term accommodation service, (b) Restaurant service, (c) Mandap keeper service, (d) SPA and other club facilities, (e) Renting of Space or Lawn (f) Misc. like Commission All the services as mentioned above are taxable supp -----S subject to levy of GST. c. The hotel is run under internationally repute....
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.... labour supply for carrying out repair of electrical installation and/ or sanitary fittings shall be available for ITC, where material and supervision is provided by the applicant? Q2.4 Will it make any difference if aforementioned works are carried out in a composite manner as a works contract, where material as well as labour is supplied by a contractor as a composite supply under works contract? Being routine repairs, the amount spent on the above mentioned all scenarios are charged to revenue as per accounting standards. Q3 Furniture & Fixture repairing work Q3.1 Whether GST paid on wood, board, mica, tapestry, paint , polish and other consumables meant for repair of existing furniture & fixtures shall be available for ITC? Q3.2 Whether GST paid on labour supply for carrying out repair of furniture & fixtures shall be available for ITC, where material and supervision is provided by the applicant? Q3.3 Will it make any difference if aforementioned works are carried out in a composite manner as a works contract for carrying out repair and maintenance job on movable furniture & fixtures such as, Sofa, Table, Chairs, Door, Cabinets, e....
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....tant case is contending that input tax credit in respect of repair and maintenance of hotel building, furniture and fixtures, sanitary and other items will be available to him in accordance to provisions of Section 17 of CGST/RGST Act, 2017. d. Further nature of work undertaken by the applicant is predominantly for immovable property involving transfer of goods and services, therefore, the activity is works contract for carrying out repair and maintenance work. The relevant provisions of the act in this regard is reproduced below: Section 2(119) of CGST Act, 2017 defines "works contract" which means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. Hence, to qualify an activity as "works contract": (i) The activities to be undertaken under a works contract may be one or more of the following in relation to any immovable property viz. Bui....
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.... received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business. Explanation.-For the purposes of clauses (c) and (d), the expression "construction" includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property; g. In view of above facts, we find that, input tax credit in general is not available for construction, reconstruction, renovation, addition, alteration or repair of an immovable property even when such goods or services or both are used in course or furtherance of business. However, the limitation in such a scenario is extent of capitalization. h. The applicant is paying GST on building materials, such as cement, concrete, bricks, cement or marble or stone slabs or tiles, paint, polish etc and on some services such as labour supply. This activity of repair and maintenance which encompasses supply of goods for a construction activity is of immovable nature. The provisions of ITC for the said supp....
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....service for supply of above mentioned goods and service is covered under Section 17(5)(c) read with explanation mentioned therein. Therefore, ITC on GST paid on above said works contract service will not be available to the extent of capitalisation of the said goods as maitioned in Explanation of Section 17(5) of the CGST/RGST Act, 2017. j. The applicant is paying GST on wood, board, mica, tapestry, paint, polish and other consumables meant for repair of existing furniture & fixtures and buying of new furniture & fixtures such as Sofa, Table, Chairs, Door, Cabinets, etc. This activity of supply of said goods and services of manpower for repair in relation to furniture & fixtures is a composite supply of goods and services. Therefore, ITC on GST paid on supply of goods and services as mentioned above will be available in accordance with provisions of Section 16 of CGST/RGST Act, 2017. The furniture and fixtures are not immovable property in most cases but can be when used as a floor or fixed for a structure. In the scenario where, the furniture and fixtures are fixed or immobilized or considered as a part of construction activity of immovable nature the....
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....here material and supervision is provided by the applicant? Answer- ITC will not be available to the extent of capitalization of service of labour supply. Q2.4 Will it make any difference if aforementioned works are carried out in a composite manner as a works contract, where material as well as labour is supplied by a contractor as a composite supply under works contract? Being routine repairs, the amount spent on the above mentioned all scenarios are charged to revenue as per accounting standards. Answer- ITC will not be available for works contract service to the extent of capitalization of supply of goods and services. Q3 Furniture & Fixture repairing work Q3.1 Whether GST paid on wood, board, mica, tapestry, paint, polish and other consumables meant for repair of existing furniture & fixtures shall be available for ITC? Answer- ITC for GST paid on supply of above mentioned goods will be available in accordance with Section 16 of CGST/RGST Act, 2017. Q3.2 Whether GST paid on labour supply for carrying out repair of furniture & fixtures shall be available for ITC, where material and supervision is provided by the ....