9911796707
TMI Blog2020 (2) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... ED, the applicant, seeking an advance ruling in respect of the following questions. 1. Whether the Applicant - a Co-operative Housing Society paying Goods and Services Tax (GST) on Maintenance Charges collected from its Members, shall be entitled to claim Input Tax Credit of GST paid on replacement of existing lift/ elevator at its own premises to the vendor registered under the Goods and Services Tax Act for manufacture, supply, installation and commissioning of lift/ elevator?; and 2. Whether the Input Tax credit, if available; is not covered under blocked credits under the Goods and Services Tax Act? At the outset, we would like to make it clear that the provisions of both the CGST Act and MGST Act are the same except for certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I of the CGST Act, 2017 describes "works contract" as defined in clause (119) of Section 2 as a Composite supply which shall be treated as supply of services under the Act. They have further reproduced Section 17 of the CGST Act, 2017 which provides for Apportionment of credit and blocked credits. 2.5. They have reproduced the definition of a 'Lift' and 'Appliance' as per P Ramanatha Aiyar's Advanced Law Lexicon; 4th Edition and in view of the above Legal provisions, explanation as per the GST Act and meanings covered under Advanced Law Lexicon, the Applicant is of the view that - - Manufacture, Supply, Installation and Commissioning of Lifts/ Elevators is in the nature of Works Contract activity which is covered under the category of' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision - X, Range - III, Mumbai South Commissionerate also appeared. The application was admitted and called for final hearing on 12.12.2019. Mr. Manish Goel, C.A., appeared and made oral and written submissions. The Authorised Representative was asked to submit the copy of contract and related documents. Jurisdictional Officer Ranjit Verma, Superintendent, Division - X, Range -III, Mumbai South Commissionerate appeared, and made written submissions. Mr. Manish Goel, C.A. appeared on 02.01.2020 and submitted copy of contract and invoices. 05. OBSERVATIONS 5.1 We have gone through the facts of the case, documents on record and submissions made by both, the applicant as well as the jurisdictional office. 5.2 Applicant plans to replace th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mes a permanent fixture of the building itself. Hence the same will be considered as an immovable property. The Authorized Representative was asked to submit the copy of contract and related documents during the course of the hearing held on 12.12.2019. On 02.01.2020, the applicant submitted a copy of Invoice No. 9-LIFT/2019-20 on a Flat Owner showing a contribution of Rs. 51,445/-, plus GST thereon towards installation of a new lift. They have also submitted a copy of Circular No. 109/28/209-GST dated 22.07.2019 which contains clarifications pertaining to issues related to GST on monthly subscription/contribution charged by a Resident Welfare Association from its members. However the applicant has not submitted any copy of contract in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or installed, adjusted, tested and commissioned in a building, and on complete erection and installation of such article when it becomes part of immovable property,..........." 5.5 In view of the above we have no doubt that the lift would become an immovable property after being erected and installed, as it is attached to the building itself. 5.6 Section 16 of the CGST Act, 2017 provides for Eligibility and conditions for taking Input Tax Credit. As per Section 16(1) "Every registered person shall, subject to such conditions and restrictions as may he prescribed and in the manner specified in Section 49, be entitled to take credit or input tax "harped on any supply of goods or services or both to him which are used or intended to be use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.8 The lift, after erection and installation is an immovable property because it becomes a part of an immovable property i.e a building. In other words it is to be considered as an integral part of the building itself. It is not a separate part of the building. When any person speaks of such a building, he also includes the lifts as an integral part of the building, like storage water tanks, etc. To summarize, Manufacture, Supply, Installation and Commissioning of Lifts/Elevators is in the nature of Works Contract activity which results in creation of an immovable property. Hence in view of the above discussions and Explanation to Section 17 of the CGST Act, we are of the opinion that the applicant is not entitled to ITC of GST paid on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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