Input Tax Credit — The applicant seeks Ruling specifically on solitary question, “Whether input credit on purchase of lift would be available to hotel as it has been used in the course for furtherance of business”.

Held that— In the instant case, the lift has become part of the building and thus falls under the exclusion from plant and machinery and accordingly, we do not find any reason to interfere with the clear provisions of statute.

The AAR, Karnataka has ruled that Lift, along with, several other such items, shall not be entitled for input tax credit when used in construction of immovable property since they take the character of Building itself. We thus hold that the applicant in the instant case shall not be entitled to avail input tax credit of tax paid on procuring the lift to be installed in the hotel building which in turn is intended to be used for providing taxable service, in terms of section 17(5)(d) of the CGST Act 2017.—Jabalpur Hotels Private Limited, In Re… [2020] 25 TAXLOK.COM 092 (AAR-Madhya Pradesh)