In re Wework India Management Private Limited (GST AAR Karnataka)
a) Whether input GST credit can be availed by the applicant on the detachable 14mm Engineered Wood with Oak top Wooden Flooring which is movable in nature and capitalized as furniture and fixture, and is not capitalized as immovable property?
The input tax credit of GST can be availed by the applicant on the detachable 14 mm Engineered wood with Oak top wooden flooring which is movable in nature and capitalized as ‘furniture”
b) Whether input GST credit can be availed by the applicant on the detachable sliding and stacking glass partition which is movable in nature and capitalized as “furniture and fixture”, and is not capitalizes as an immovable property?
The input tax credit of GST is not available on the detachable sliding and stacking glass partitions.
Also Read- ITC under GST available on detachable wooden flooring & stackable glass partitions
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, KARNATAKA
ORDER UNDER SECTION 98(4) OF THE CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SECTION 98(4) OF THE KARNATAKA GOODS AND SERVICES TAX ACT, 2017
1. M/ s We work India Management Private Limited, (called as the ‘Applicant’ hereinafter), having GSTIN number 29AADCH8710J2ZB, has filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 and Section 97 of the KGST Act, 2017, in FORM GST ARA-01 discharging the fee of Rs.5,000-00 each under the CGST Act and the KGST Act.
2. The Applicant is a Private Limited Company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question:
a) Whether input GST credit can be availed by the applicant on the detachable 14mm Engineered Wood with Oak top Wooden Flooring which is movable in nature and capitalized as “furniture and fixture”, and is not capitalized as “immovable property”?
b) Whether input GST credit can be availed by the applicant on the detachable sliding and stacking glass partition which is movable in nature and capitalized as “furniture and fixture”, and is not capitalizes as an immovable property?
3. The applicant furnishes some facts relevant to the stated activity:
a. The applicant states that he is in the business of supplying shared works pace/office space to the freelancers, startups, small businesses and large enterprises. Towards this end, the Applicant procures goods and services from various contractors for fitting-out of the works paces and provides the said works pace on rent, to various companies and individuals as sharing work-spaces. The applicant states that he has paid GST on the inputs procured.
b. The applicant states that however, as per Section 17(5) of the CGST Act, a restriction is imposed with respect to input tax credit (hereinafter referred to as “ITC”) on procurement of goods and services or both received by the taxable person for construction of an immovable property. However, the term ‘construction’ is limited to supplies to the extent capitalized to an immovable property.
c. Of the procurements, two of the major components which are in the nature of furniture and fixtures, that are used in We Work buildings are-
