Page 46 - GSTL_23rd July 2020_Vol 38_Part 4

J104 GST LAW TIMES [ Vol. 38
of 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 fur-
therance of business.
The Explanation to Section 17 states that - “- For the purposes of this Chapter
and Chapter VI, the expression “plant and machinery” means apparatus,
equipment, and machinery fixed to earth by foundation or structural support
that are used for making outward supply of goods or services or both and in-
cludes such foundation and structural supports but excludes -
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.”
Explanation to Section 17(5) is very clear. ITC is available for “plant and machin-
ery”. Plant and machinery mean apparatus, equipment and machinery fixed to
earth by foundation or structural support that are used for making outward sup-
ply of goods or services or both and includes such foundation and structural sup-
ports but excludes - Land, building or any other civil structures.
The lift, after erection and installation is an immovable property as 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.
Order of AAR
For reasons as discussed in the body of the order, the questions are an-
swered thus :
Question 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, sup-
ply, installation and commissioning of lift/elevator?
Answer : Answered in the negative.
Question 2 :- Whether the Input Tax Credit, if available; is not covered
under blocked credits under the Goods and Services Tax Act?
Answer :- Not answered in view of Question No. 1 above.
Comments
In this case even though lift was installed and fixed to building, it will
qualify as equipment (plant and machinery) used for making outward taxable
supply of services. For this purpose the applicant has collected monthly mainte-
nance charges from the residents of housing society towards replacement of lift
and paid tax on monthly charges but ITC is denied by the Authority for Advance
Ruling.
AAR order pronounced under Section 103 of CGST Act, 2017, is binding
only on the applicant who had sought it in respect of admissibility of input tax
credit. AAR Order is also subject to amendment under Section 102. If an appli-
cant is aggrieved with Order of AAR, he may appeal to the Appellate Authority
for Advance Ruling under Section 100 of CGST Act, 2017. Section 16(1) of CGST

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