Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Is ITC Can be availed on installation of lift in hotel for a person involved in hotel business

Ankit Sha (75 Points)

26 February 2024

is ITC Can be availed on installation of lift in hotel for a person involved in hotel business

Reply
Follow
Share

6 Replies

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 26 February 2024

Lift is part of building construction and same is ineligible u/s 17(5)

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 26 February 2024

Yes I agreed with Ms.Rashmi Gandhi...

@ Ankit Sha,

The ITC is ineligible u/s 17(5) clause (C) and (D)...

1 Like

sabyasachi mukherjee (27117 Points)
Replied 26 February 2024

Here 17(5) c is applicable I doubt

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 27 February 2024

If doubt then ask GSTN...

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 27 February 2024

Why you are here we also doubt

Upgrade to CAclubindia Pro. Subscribe Now!

Money Money (383 Points)
Replied 27 February 2024

When it comes to GST (Goods and Services Tax), the input tax credit (ITC) on the installation of a lift in a hotel depends on specific regulations. Let’s delve into the details:

Lift

Lift as an Integral Part of Building:
According to the CGST Act 2017, lifts are considered an integral part of the building construction.
As a result, the tax paid on the procurement and installation of lifts in hotel buildings is ineligible for ITC under Section 17 (5) of the CGST Act123.
Conclusion:
If you’re involved in the hotel business and have installed a lift, unfortunately, you cannot claim ITC for the tax paid on the lift installation.