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Gst input on industrial lift

amit (Accountant) (96 Points)

18 December 2019

ABC company has lent its commercial property to XYZ. A new Industrial Lift is being installed at the property. Can ABC company claim GST Input on the Lift ?

If not, then can XYZ claim input, if it makes the transaction directly. ?

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10 Replies

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 18 December 2019

Yes lift being plant & machinery the credit is available with the person making payment and whose name invoice is maked.

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 19 December 2019

No..... you cannot claim ITC on lift , it's fixed to building become part of Immovable property & the ITC for the has been block u/s 17(5).

Note : Yes if the lift has been installed in factory & it is used to carry goods , then you can claim ITC on same

2 Like

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 19 December 2019

@ pankaj rawat ji lift have a separate block of assets thus why the cost of lift we added in cost of building and secondly the building is on rent not owned by ABC thus how can they capitalize the cost of lift into building cost...

sabyasachi mukherjee (25973 Points)
Replied 19 December 2019

@ pankaj
the point Is
though it is blocked under sec 17(5)
but since the property is used for business purpose and the lift being anicilliary to lettng out of property for business purpose .
We may conclude that lift is used for the business purpose and can claim credit.

blocked credit is applicable in case he Is using it for personal purposes.

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 19 December 2019

Originally posted by : amit
	ABC company has lent its commercial property to XYZ. A new Industrial Lift is being installed at the property. Can ABC company claim GST Input on the Lift ? If not, then can XYZ claim input, if it makes the transaction directly. ?

Your query is can't understandable Mr Amit...

I agreed to Mr Pankaj Rawat Ji reply...

Here ABC is the Bulding owner and he is installed the Lift then ITC not available as per sec 17(5) of CGST act. Also no way for claim ITC by XYZ. Bcoz, He is not install the Lift...

2 Like

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 19 December 2019

Originally posted by : CA ABHAY GUPTA
	@ pankaj rawat ji lift have a separate block of assets thus why the cost of lift we added in cost of building and secondly the building is on rent not owned by ABC thus how can they capitalize the cost of lift into building cost...

Dear Mr CA ABHAY GUPTA.,

The Building is ABC's own. It's taken as Rent by XYZ....

The said lift is not using as PM by ABC...

1 Like

sabyasachi mukherjee (25973 Points)
Replied 19 December 2019

I will request everyone in the forum to
think
that how will ABC COMPANY TREAT THE RENT FROM THE BUILDING.
ITS IMPWRATIVE HE MIGHT BE HAVING SOME BUILDING .
SO IN THAT CASE HOW WILL U TREAT THIS ?

RAJA P M ("Do the Right Thing...!!!") (127058 Points)
Replied 19 December 2019

Originally posted by : sabyasachi mukherjee
	I will request everyone in the forum to thinkthat how will ABC COMPANY TREAT THE RENT FROM THE BUILDING.ITS IMPWRATIVE HE MIGHT BE HAVING SOME BUILDING .SO IN THAT CASE HOW WILL U TREAT THIS ?

Treat under FA