A RESORT WHICH SUPPLIES SERVICES LIKE ACCOMMODATION, RESTAURANT, JUNGLE SAFARI ETC PURCHASES FURNITURE, AC, HEATER, OTHER FURNITURE FOR ROOMS, CROCKERY FOR RESTAURANT, PUTS SOLAR ENERGY PLANT IN HOTEL FOR ELECTRICITY, IS ITC AVAILABLE ON IT OR NOT. PLEASE MENTION ITEM AND SERVICE WISE TO GET CLARIFICATION UNDERSTOOD ABLE.

Reply—ITC will be available for GST paid on purchase of new ready to use furniture, AC, heater for rooms in accordance with Section 16 of CGST Act.

ITC on purchase of inputs (crockery or any kind of furniture) for providing restaurant service is not available; rate of tax on restaurant service is 5% without ITC. (Refer No.46/2017-Central Tax-Rate Dated: 14th November, 2017)

Section 16 of CGST Act, clearly states that input tax credit can be taken of any good or service purchased for ‘Furtherance of Business'. Section 17(5) is also not restricted input tax credit on purchase of Solar panel. Thus, a taxpayer is eligible to take input tax credit on purchase of Solar panel. Solar system can be considered as plant and machinery and input tax credit may be availed.