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TMI Blog2019 (5) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... ) read with explanation mentioned therein. Therefore, ITC on GST paid on such goods as mentioned above will not be available to the extent of capitalisation of the said goods as mentioned in Explanation of Section 17(5) of the CGST/RGST Act, 2017. The supply of goods and services supplied for construction work of an immovable nature can be done in composite manner also i.e. works contract. The works contract 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 mentioned in Explanation of Section 17(5) of the CGST/RGST Act, 2017. Building Repair Work - GST paid on building materials, such as cement, concrete, bricks, cement or marble or stone slabs or tiles, paint, polish and any other building materials meant for repair of building - HELD THAT:- ITC will not be available to the extent of capitalization of building materials. Building Repair Work - GST paid on labour supply for carrying out repair of building shall be available for ITC, where material and super ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be available for service of labour supply in accordance with Section 16 of CGST/RGST Act, 2017. Furniture Fixture repairing work - 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, etc. where material as well as labour is supplied by a contractor as a composite supply under works contract - HELD THAT:- ITC will be available for GST paid on composite supply of goods (furniture fixtures) and services (manpower supply) in accordance with Section 16 of CGST/RGST Act, 2017. Furniture Fixture repairing work - whether input tax credit can be availed by the applicant of GST paid on purchase of new ready to use furniture such as chairs, etc, in terms of section 17 of the RGST Act, 2017? - HELD THAT:- ITC will be available for GST paid on purchase of new ready to use furnitures in accordance with Section 16 of CGST/RGST Act, 2017. - Advance Ruling No. RAJ/AAR/2019-20/05 - - - Dated:- 30-4-2019 - J.P. Meena Member (Central Tax) and Hemant Jain Member State Tax Present for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... movable property. Hence, up-keep and maintenance of hotel building, equipments, electrical installation, furniture fixtures and other infrastructures is crucial for continuity of its business. d. It is evident from the attached Exhibit 2 that the major portion of expense is towards repair and maintenance of the Hotel and thus, the applicant through this application seeks guidance on the availability of ITC or not. The aggregate Expense on repairs in FY' 2018 was ₹ 9.8 cr out of total Operating Expense of ₹ 36.99 Cr which is almost 26%. 2. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT Q1 Building Repair Work Q 1.1 Whether GST paid on building materials, such as cement, concrete, bricks, cement or marble or stone slabs or tiles, paint, polish and any other building materials meant for repair of building shall be available for ITC? Q 1.2 Whether GST paid on labour supply for carrying out repair of building shall be available for ITC, where material and supervision is provided by the applicant? Q 1.3 Will it make any difference if aforementioned works are carried out in a composi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of GST paid on purchase of new ready to use furniture such as chairs, etc, in terms of section 17 of the RGST Act, 2017? 3. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 03.04.2019 at Room no. 2.29 NCRB, Statue Circle, Jaipur. Shri Sanjiv Agarwal (Authorised Representative) of applicant appeared for PH. During the PH, he reiterated the submissions already made in the application and also submitted some additional documents. He further requested that the case may be decided at the earliest. 4. COMMENTS OF THE JURISDICTIONAL OFFICER The jurisdictional officer (Assistant Commissioner, CGST Division-H, CGST Jaipur Commissionerate, Sector-10, Vidyadhar nagar, Jaipur 324001) has submitted his comments vide letter dated 15.03.2019 which can be summarized as under: a. ITC on building repair work is not allowed. b. ITC on labour supply for carrying out repair of building work is not allowed. c. ITC on repair work relating to electric installation/ sanitary fittings is not allowed. d. ITC on supply of furniture is admissible to the extent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is involved. Immovable property is defined in Section 3(26) of the General Clauses Act, 1897 as under: Immovable Property shall include land, benefits to arise out of land and things attached to earth, or permanently fastened to anything attached to the earth. e. The Section 16 of CGST/RGST Act, 2017 provides eligibility and conditions for taking input tax credit which are reproduced as below- (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... construction purpose which is a supply of service. The supply of manpower service is also covered under Section 17(5)(d) read with explanation mentioned therein. ITC on GST paid on such supply of service as mentioned above will not be available to the extent of capitalisation of the said service. The aforementioned supply of goods and services supplied for construction work of an immovable nature can be done in composite manner also i.e. works contract. The works contract 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 mentioned in Explanation of Section 17(5) of the CGST/RGST Act, 2017. i. The applicant is paying GST on electrical fittings, such as Cables, Switches, NCB, and other electrical consumables and sanitary fittings, such as tiles, commode, bath tub, wash basin, PVC pipes and other bath room sanitary fittings etc. This activity of installing electrical fittings and sanitary fittings encompasses supply of goods for a construct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. In view of the foregoing, we rule as follows:- RULING Q1 Building Repair Work Q 1.1 Whether GST paid on building materials, such as cement, concrete, bricks, cement or marble or stone slabs or tiles, paint, polish and any other building materials meant for repair of building shall be available for ITC? Answer- ITC will not be available to the extent of capitalization of building materials. Q 1.2 Whether GST paid on labour supply for carrying out repair of building shall be available for ITC, where material and supervision is provided by the applicant? Answer- ITC will not be available to the extent of capitalization of GST on labour supply. Q 1.3 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 to the extent of capitaliza ..... X X X X Extracts X X X X X X X X Extracts X X X X
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