Lift Service ITC Claim for Embroidery Unit

Please see the provision in GST Laws in relation to the issue  -

[Sec. 17. Apportionment of credit and blocked credits.

(1) ……………….

(2)…………………..

----

(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section(1) of

section 18, input tax credit shall not be available in respect of the following, namely:—

…….

……..

(c) works contract services when supplied for construction of an immovable property

(other than plant and machinery) except where it is an input service for further supply of

works contract service;

(d) goods or services or both 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;

Therefore, Lift is not Plant and Machinery and therefore GST Input is not permissible

ITC will be available if such repairs is not of capital nature.

iMMOVABLE PROPERTY BELONGS TO OTHER, AS PER AGREEMENT HE PROVIDED THE CIVIL STRUCTURE FOR FIXING LIFT. .. TENANT  AS PER AGREEMENT INCURR THE EXPENSES TO GET LIFT FIXED WITH CONDITION THAT HE WILL TAKE BACK ON TERMINATION OF TENANCY . OR MAY TAKE CONSIDERATION EQUAL TO BOOK VALUE AFTER DEDUCTING DEPRECIATION AS CLAIMED UNDER i TAX . IN SUCH CIRCUMSTANCES WHETHER ITC  WILL BE AVAILABLE TO TENANT, AS HE HAS NOT CONSTRUCTED IMMOVABLE PROPERTY NOR HE IS OWNER, BUT LIFT IS PLANT FOR HIS BUSINESS.   

There are cases where lift credit was said to be eligible (Service Tax Appeal No. 20494 of 2020 - CESTAT). Also, it is P&M. All repairs whether capitalised or not would be eligible under GST. 

Sec 17(5)(c) & (d) restricts ITC when in relation to immovable property. 'Lift' can be disputed as movable property. 

Very difficult to prove it plant & machinery in an embroidery unit.