Assessee is a partnership firm constructing a Hotel Building having 100 rooms, Banquet Hall, BAR and Restaurant and other facilities. Whether Input Credit for following will be allowable

i Furniture and Fixtures like chair, bed etc not attatched with building in room, BAR and Restaurant

ii Electric appliances in the room like Air conditioner, Heater, Geyser, Fan in the room

iii Machinery of kitchen and Bar Gym not attatched with building

iv Severage Treatement Plant, Central Air conditioning Plant, Water Softner Plant with pump and motors, attatched with Building by Pipes, vents etc.

v; Transformer, Generating set placed on floor purchased and installed by supplier company on charge basis

vi. Lifts installed purchased and installed on charges basis by branded company.

vii. Decorative Lights, Switches other decorative electricity items fixed on walls and floors.

Reply—ITC will be available for GST paid on purchase of new ready to use furnitures in accordance with Section 16 of CGST Act. GST paid on wood, board, mica, tapestry, paint, polish and other consumables meant for repair of existing furniture & fixtures will be available for input tax credit. refer ruling of AAR Rajasthan in matter of Rambagh Palace Hotels Pvt. Ltd dated 30.04.2019.  

Input tax credit is blocked u/s 17(5) of CGST Act, for goods or services or both received by a taxable person for construction of 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.

The term construction includes re-construction, renovation, additions or alterations or repairs, to the extent of Capitalization, to the said immovable property.

Thus, input tax credit will not be available to the extent of Capitalization.

1) ITC will be allowed

2) ITC will be allowed

3) ITC will be allowed

4) it will covered under plant and machinery, ITC would be allowed

5) ITC will be allowed

6)  in our opinion input tax credit cannot be claimed on Lift.

7) ITC will be allowed