Appellate Authority for Advance Ruling, Maharashtra in the case of  Las Palmas Co-Op. Housing Society, In re – [2020] 120 taxmann.com 128 (AAAR-MAHARASHTRA) has hele that no ITC shall be available of GST paid on lift installation charges paid to lift contractor by society.

The assessee, a co-operative housing society, was recovering amount from each of society members for lift charges, ground rent, service charges etc. and paying 18% GST after claiming input tax credit (ITC).

 It was under process of replacing lift of the society for which contract was awarded to a lift contractor. It was recovering separate amount for replacement of lift from members and charging 18% GST on it.

 It filed an application for advance ruling to determine whether it would be eligible to claim ITC on lift installation charged paid to lift contractor.

The assessee submitted that the lift being in nature of plant and machinery would be outside the purview of blocked ITC.

The Authority for Advance Ruling, Maharashtra held that lift when installed in building became integral part of building and therefore would be treated as immovable property and ITC would not be allowed.

The assessee filed an appeal before Appellate Authority for Advance Ruling, Maharashtra. It argued that it was providing same services of work contract as received from lift contractor and if work contract services availed for provided work contract services, then ITC would be allowed.

The Appellate Authority for Advance Ruling, Maharashtra observed that the assessee was not a work contract service provider.

The ITC would be available on tax paid on work contract services if such services are input services for further supply of work contract services.

Therefore, it was held that ITC in respect of GST paid on such works contract services would not be admissible as society itself was not a works contract service provider and works contract service was received by society for common benefit of members.