Gst input tax credit on hotel building including restaurant.
This query is : Resolved
09 February 2018
Dear Experts,
I want to know that GST Input tax credit available on newly constructed Hotel building on GST Paid on Building material, Plant & Machinery or other equipment installed in it against Payable of GST on Room Rent?
I want to know that GST Input tax credit available on newly constructed Hotel building on GST Paid on Building material, Plant & Machinery or other equipment installed in it against Payable of GST on Room Rent?
09 February 2018
As per Section 17(5)(d), Input tax credit shall not be available for goods or services or both received by a taxable person for construction of an immovable property (other than plant and machinery) on his own account including when such goods and services or both are used in the course or furtherance of business.
Considering the above provision, in your case, ITC shall not be eligible for goods and services used for the construction of hotel building.
But ITC shall be eligible for plant and machinery if they are not forming part of immovable property. We need to provide detailed list of assets to ascertain whether ITC in those shall be eligible or not. Eg: ITC can be made available for movable furniture, window or split AC but shall not be available for centralized AC or lifts.
Considering the above provision, in your case, ITC shall not be eligible for goods and services used for the construction of hotel building.
But ITC shall be eligible for plant and machinery if they are not forming part of immovable property. We need to provide detailed list of assets to ascertain whether ITC in those shall be eligible or not. Eg: ITC can be made available for movable furniture, window or split AC but shall not be available for centralized AC or lifts.
09 February 2018
Thanks for the reply. Well the assets arr furniture & fixture, air-conditioners, computers, transformers, Mobile phone.
10 February 2018
Credit shall be available for furniture and fixtures, air conditioners, computers, mobile phone. Whether for transformer the credit shall be available or not is a disputable and litigation point.
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