𝗞𝗻𝗼𝘄𝗹𝗲𝗱𝗴𝗲 𝗿𝗲𝗴𝗮𝗿𝗱𝗶𝗻𝗴 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗼𝗳 𝗚𝗦𝗧 𝗼𝗻 𝗶𝗻𝘀𝘁𝗮𝗹𝗹𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗹𝗶𝗳𝘁𝘀/𝗲𝗹𝗲𝘃𝗮𝘁𝗼𝗿𝘀 𝗮𝗻𝗱 𝗜𝗻𝗽𝘂𝘁 𝗧𝗮𝘅 𝗖𝗿𝗲𝗱𝗶𝘁 (𝗜𝗧𝗖) 𝗼𝗻 𝘀𝘂𝗰𝗵 𝗴𝗼𝗼𝗱𝘀 & 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀
𝗞𝗲𝘆 𝗖𝗹𝗮𝗿𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 𝗼𝗳 𝗚𝗦𝗧 𝗖𝗶𝗿𝗰𝘂𝗹𝗮𝗿 𝗡𝗼. 𝟭𝟮𝟯/𝟰𝟮/𝟮𝟬𝟭𝟵 – 𝗚𝗦𝗧
𝗦𝘂𝗽𝗽𝗹𝘆 𝗮𝗻𝗱 𝗜𝗻𝘀𝘁𝗮𝗹𝗹𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗟𝗶𝗳𝘁𝘀/𝗘𝗹𝗲𝘃𝗮𝘁𝗼𝗿𝘀
The activity of supply and installation of lifts involves both supply of goods (lift components) and supply of services (installation, erection).
If the contract is for supply and installation of lift as an immovable property, it will be treated as a composite supply of works contract service.
𝗚𝗦𝗧 𝗥𝗮𝘁𝗲 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝗯𝗹𝗲
GST rate applicable on such works contract is 18% as per Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017.
𝗜𝗻𝗽𝘂𝘁 𝗧𝗮𝘅 𝗖𝗿𝗲𝗱𝗶𝘁 (𝗜𝗧𝗖) 𝗘𝗹𝗶𝗴𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗼𝗻 𝗟𝗶𝗳𝘁𝘀/𝗘𝗹𝗲𝘃𝗮𝘁𝗼𝗿𝘀
ITC shall not be available for goods/services used in construction of immovable property (building, civil structure) as per Section 17(5)(d) of CGST Act, 2017.
Lifts and escalators, once installed and embedded in the building, lose their identity as movable goods.
Hence, ITC on lifts/escalators is blocked when constructed on own account (for own use, for immovable property).
𝗘𝘅𝗰𝗲𝗽𝘁𝗶𝗼𝗻: Further Supply of Works Contract Service
If the lift is installed by a contractor who is further supplying works contract service, ITC on lifts used in that service is allowed.
