ITC on LIFT, Goods and Services Tax - GST

[ROHIT GOEL]

Dear Team,

There is a confusion and difference of opinion regarding allowability of ITC on purchase of lift... The usage of lift will be in factory only for movement of goods and not staff...

Is there any difference in opinion if the use of lift is for staff members and not goods...

Posts / Replies

[MUKUND THAKKAR]

if are you using the lift for staff members it is covered under the plant facility and lift installation is also covered under WCT. that's why it is not Eligible for ITC.

if you are using the for the movement of Raw material than ITC is eligible.

other expert view awaited..

[KASTURI SETHI]

The good, "Lift" falls under HSN 8428 1011/8428 1019. ITC is admissible. Not hit by Section 17(5) of CGST Act, 2017, in view of the usage.

[Rajagopalan Ranganathan]

Sir,

In my opinion, if the lift is part and parcel of an establishment which is engaged in supply of taxable goods and services the gst paid on the lift is eligible for ITC.

[Alkesh Jani]

Sir, In this regards, my view, lift can be considered as capital goods if in office premises and plant and machinery if used in factory, same shall be recorded in the books of Account. ITC can be availed as lift is not mentioned in Section 17(5) of the CGST Act,2017,but the provisions of Section 16(3) shall apply, so while taking the ITC of the lift the depreciation cannot be claimed under the provisions of Income tax or else the input tax credit on the said tax component shall not be allowed. The rule 44 of the CGST Rules, 2017 may also be considered for reversal If any. Please correct me if mistaken.

[KASTURI SETHI]

It is natural that Section 16 CGST Act and Rule 44 have to be taken care of as pointed out by Sh.Alkesh Jani, Ji.

[Ganeshan Kalyani]

I agree with the experts collegue. Input tax credit is eligible for lift.

[SHOBHIT BANSAL]

Sir, I also agree with the opinion in regards to allowability of ITC on purchase of lift installed in business premises irrespective of the use for staff or goods. ITC allowable.

I have another issue in regards to alowability of ITC where output service is Renting of an Immovable property. Here the registered taxable person installed lift in building given on rent.

There is a confusion in regards to ITC of LIFT when renting of immovable property is taxable services. Is it covered by clause 'c' of section 17(5) of the CGST Act? Pls clarify

[KASTURI SETHI]

It is not covered under Section 17(5)(c) of CGST Act. This sub-clause is meant for Works Contract Service and not for "Renting of Immovable Property". Hence not relevant. However, your question is worth further examination.

[KASTURI SETHI]

Lift/escalator is a machine and it falls under HSN 8428 40 00. As a machine and especially, in view of usage and function it can be inferred that it is an absolutely must for providing Renting of Immovable Property Services. I think it conforms to the condition of "in business or furtherance of business" It does not fall under any exclusion clause. So in my view, ITC is allowed.

Other experts may intervene pl.

[SHOBHIT BANSAL]

Thanks Sir for your valuable suggestions.

[SELVAKUMAR MUTHURAJ]

Lift forms integral part of building or any other civil structure, cenvat credit of GST paid on such sanitary fittings is not available..”; On the other hand, credit is admissible on office furniture & fixtures and A.C. Plant “provided that the registered person has not claimed depreciation on the tax component of the cost of the capital goods and plant and machinery under the provisions of the Income-Tax Act 1961”; In this regard, refers to CBIC Circular dated April 29, 2011 and CESTAT decision in Balkrishna Industries Ltd. : Uttarakhand AAR

[Sushil Baheti]

Hi

i wanted to know what is the GST % for lift being used at bunglow / personal premises.

Also if individual does not have place to take credit then in that case is the GST exempted?

[rahul jain]

Sir,

I think ITC on the lift is not available. The reference is :

No doubt Lift is qualifying as a machine under the HSN list. But what the plain reading of the sec. 17(5) (d) clearly suggests is that any goods or services used for construction of an immovable property, the credit of the same will be blocked.

The exception is for Plant & machinery.

I interpret the section as if we use any goods for construction of Plant & machinery which is separate that of the other immovable property, then we can claim the credit on the same plus its structural support.

If we use lift in the construction of the immovable property such as building etc, the credit seems to be blocked.

[Sushil Baheti]

Ok

but what will be the GST rate charged to individual user / bunglow.

I read somewhere here that the GST rate has been reduced to 12% for self use lifts.

Also so if we do not take credit of GST then is the GST % gone down to 5 ?

[Jasbir Uppal]

I also greed with the experts colleague lift can be considered as capital goods if in office premises and plant and machinery if used in factory and ITC can be availed But depreciation cannot be claimed under the provisions of Income tax on the input tax credit.