GST on replacement of elevator/lift in housing society’s

This query is : Resolved

CHARANJIT SINGH Ghumman (Querist)
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28 February 2024 The General Body of Housing Society decided to replace 52 year old Otis lift with new lifts of Schindler, which will last for 25 years or so. Is it correct to treat the expense of 2.50 Crores as capital expense , which is liable to depreciation. GST is charged by Schindler on machinery and service to make it operational.

The Society is billing these capital expenses as repair and maintainance cost and adding it in quarterly bill and as total after such an addition is over Rs.22,500/ it is levieng Output GST of 18%. Is this correct position under accounting principals an GST Laws?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 March 2024 The Housing society will not own any capital assets so they are rightly charging it as repair and maintenance expense and claim it from members.
ITC can be claimed on GST paid on new lift.