Input Tax Credit— Section 17(5) of CGST Act— The present appeal has been filed against the order of Advance Ruling order.

M/s. Jabalpur entertainment complexes pvt. ltd., Jabalpur, the appellant, has submitted that it is a private limited company operating a Mall and Multiplex in his building.

The appellant has stated before AAR (Authority for Advance Ruling) that he is charging GST on outward supply of goods and services as under:

(i). Sale of movie tickets - @28% (on tickets exceeding Rs 100/- in value) or @18 % (on tickets below Rs 100/- in value)

(ii). Renting of shops @18%

(iii). Common area maintenance charges @18%

(iv). Sale of food & drinks - @5% (without claiming ITC on the purchase of food items and beverages)

QUESTIONS RAISED BEFORE AUTHORITY FOR ADVANCE RULING (AAR)

1. Whether ITC of GST paid on goods purchased for the purpose of maintenance such as Vitrified Tiles, Marble, Granite, ACP Sheet, Steel Plates, TMT Tor (Saria), Bricks, Cement, Paint, Chemicals, Sanitary items like wash basin, urinal pots and toilets accessories can be claimed in full ?

2. Whether ITC of GST paid on Work contract service received from registered & unregistered Contractor for Maintenance Contract of building can be claimed in full?

RULING PRONOUNCED BY AUTHOURITY FOR ADVANCE RULING (AAR)

ITC of GST paid on goods purchased for the purpose of maintenance of Mall such as vitrified tiles marbles granite ACP sheet, steel plates, TMT TOR (saria) bricks cement paint chemicals sanitary items like wash basins, urinal pots and toilets accessories shall not be admissible to the applicant in terms of clause (c) of section 17(5) of GST ACT, 2017.

The ITC of GST paid on works contract services received by the applicant for maintenance contract of building shall not be available to them in terms of clause (d) of section 17(5) of GST ACT, 2017.

QUESTIONS RAISED BEFORE THE APPELLATE AUTHOURITY FOR ADVANCE RULING (AAAR)

The following questions have been posed before the authority with reference to the activity undertaken by the applicant:

1. Whether ITC on GST paid on goods purchased for the purpose of maintenance such as vitrified tiles, marbles, granite, ACP sheets, steel plates, TMT TOR, bricks, cement, paint, chemicals sanitary items like wash basin urinal pots and toilet accessories can be claimed in full;

2. Whether ITC on GST paid on works contract services received from registered and unregistered contractor of building can be claimed in full?

Held that—

Input Tax Credit of Input Tax paid on goods purchased for the purpose of repair of building such as vitrified tiles, marbles, granite, ACP sheet, steel plates, TMT TOR (saria), bricks, cement, paint, chemicals, sanitary items like wash basins, urinal pots and toilets accessories are not eligible for Input Tax Credit to the extent of capitalization to the appellant in terms of clause (d) of section 17(5) of GST ACT, 2017.

The Input Tax Credit of Input Tax paid on works contract services received by the appellant for repair of building is ineligible to the extent of capitalization in terms of clause (c) of section 17(5) of GST ACT, 2017.