GST paid on sanitary fittings not available as it is an integral part of
[Bahl Paper Mills Ltd., In re-  94 taxmann.com 70 (AAR- Uttarakhand)]
According to u/s. 17(5) of CGST Act, Which block the credit or unable to take credit Clause (f) Works contract services for construction of immovable property except when
- It is input service for further supply of works contract service e.g. Subcontract
- Immovable property is plant and machinery i.e. ITC on works contract services used for construction of immovable plant and machinery is available.
Inward supply received by a taxable person for the construction of an immovable property (other than plant and machinery) on his own account even when such supplies are used in the course of or furtherance of business.
Facts of the Case:
- On the basis of above provision the assessee filed an application before the Authority for Advance Ruling on the issue ‘whether credit will be available for the GST paid in respect of office fixtures and furniture, AC plant and sanitary fittings installed in a new building constructed for furtherance of business
- Also it would be capitalized in books of account.?
Following observations were found:
- Authority observed that credit is restricted only for with respect to immovable property.
- The Authority for Advance Ruling held that the input tax credit (ITC) of GST paid in relation to building or any other civil structure is not available.
- The sanitary fittings are integral parts of building or any other civil structure.
- Therefore, the ITC of GST paid on such sanitary fittings is not available.
- However, the credit of GST paid in respect of office fixtures & furniture, AC plant is admissible if registered person doesn’t claim depreciation on the GST component under the Income-tax Act.