Admissibility of ITC on Central AC Plant, Lift, New Locker Cabinet installed during Construction of New office

By Editor2 Goods and Services Tax Judiciary July 30, 2021 1 comment

TaxGuru Citation: 2021 taxguru.in 1934
Case Name: In re The Varachha Co Op Bank Ltd (GST AAR Gujarat)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: Advance Rulings, Gujarat AAR/AAAR

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In re The Varachha Co Op Bank Ltd (GST AAR Gujarat)

Q. Whether the Applicant, having undertaken the Construction of their New Administrative Office, will be eligible for the ITC of following:

(i) Central Air Conditioning Plant (Classified & Grouped under Plant & Machinery)

(ii) New Locker Cabinet (Classified & Grouped under Locker Cabinets)

(iii) Lift (Classified & Grouped under Plant & Machinery)

(iv) Electrical Fittings, such as Cables, Switches, NCB and other Electrical Consumables Materials (Classified & Grouped under Separate Block namely Electrical Fittings)

(v) Roof Solar (Classified & Grouped under “Plant & Machinery”)

(vi) Generator (Classified & Grouped under “Plant & Machinery”)

(vii) Fire Safety Extinguishers (Classified & Grouped under “Plant & Machinery”)

(viii) Architect Service Fees (Charged to Profit & Loss Account)

( ix) Interior Designing Fees (Charged to Profit & Loss Account).

Answer:

1. Input Tax Credit is admissible on New Locker Cabinet and Generator.

2. Input Tax Credit is blocked under Section 17(5)(c ) CGST Act for: Central Air Conditioning Plant; Lift; Electrical Fittings; Fire Safety Extinguishers, Roof Solar Plant.

3. Input Tax Credit is blocked under Section 17 (5) (d) CGST Act for : Architect Service and Interior Decorator fees.

AAAR Order: ITC Eligibility for Construction Project: Central Air Conditioning Plant, Lift etc.