GST ARA order in case of M/s. Las Palmas Co-operative Housing Society Ltd.

Case Covered:

Las Palmas Co-operative Housing Society Ltd.

Facts of the case:

The applicant, a Co-operative Housing Society registered under the Maharashtra Co-operative Housing Society Act, provides various services to its Residents for which members are charged Maintenance charges under various heads like- Service Charges, Electricity Charges, Lift Charges, Insurance, etc. The applicant society charges GST on such Maintenance Bills as applicable.

The applicant has proposed to replace the existing LIFT along with its supporting structures.

Applicant’s query is whether they shall be entitled to claim Input Tax Credit(ITC) of GST paid, on replacement of existing lift/elevator, to the vendor registered under the GST Act for manufacture, supply, installation, and commissioning of lift/elevator?

The applicant has reproduced the provisions of Section 16(1) of the CGST Act, pertaining to eligibility and conditions for taking ITC. They have also reproduced the relevant portion of the definition of a ”works contract’ ‘as mentioned in Section 2(119) of the CGST Act 2017.defines ”works contract”. They have stated that Sch. II of the CGST Act, 2017 describes ”works contract” as defined in clause (119) of section 2 as a Composite Supply which shall be treated as supply of services under the Act. They have further reproduced Section 17 of the CGST Act, 2017 which provides for apportionment of credit and blocked credit.

Observations:

We have gone through the facts of the case, documents on record and submissions made by both, the applicant as well as the jurisdictional officer.

Applicant plans to replace the existing LIFT/ELEVATOR in their society building, along with its supporting structures. Their query is whether they will be entitled to claim Input Tax Credit of GST paid on replacement of existing lift/elevator to the vendor registered under the GST Act for manufacture, supply, installation, and commissioning of lift/elevator.

In view of the extensive deliberations as held hereinabove, we pass an order as follows:

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