ELIGIBILITY OF ITC ON GST PAID UNDER WORK CONTRACT SERVICES : RAJASTHAN AAR

ELIGIBILITY OF ITC ON GST PAID UNDER WORK CONTRACT SERVICES: RAJASTHAN AAR

RAJASTHAN AUTHORITY FOR ADVANCE RULING

GOODS AND SERVICES TAX

Case Title- M/s Rambagh Palace Hotels Pvt. Ltd.

(GST AAR RAJASTHAN)

Advance Ruling No. RAJ/AAR/2019-20/05

Date of Judgment/Order- 30th April 2019

RULING

Q.1. Building Repair Work
Q1.1 Whether GST paid on building materials, such as cement, concrete, bricks, cement or marble or stone slabs or tiles, paint, polish and any other building materials meant for repair of building shall be available for ITC?

Answer- ITC will not be available to the extent of capitalization of building materials.(Building Repair Work)

Q1.2 Whether GST paid on labour supply for carrying out repair of building shall be available for ITC, where material and supervision is provided by the applicant?

Answer- ITC will not be available to the extent of capitalization of GST on labour supply.

Q1.3 Will it make any difference if aforementioned works are carried out in a composite manner as a works contract, where material as well as labour is supplied by a contractor as a composite supply under works contract?

Being routine repairs, the amount spent on the above mentioned all scenarios are charged to revenue as per accounting standards.

Answer- ITC will not be available to the extent of capitalization of building materials and service of labour supply.

Q. 2. Repair Work relating to Electric Installation / Sanitary Fittings

Q2.1 Whether GST paid on electrical fittings, such as Cables, Switches, NCB, and other electrical consumables meant for repair of existing electrical fittings shall be available for ITC?

Answer- ITC will not be available to the extent of capitalization of electrical fittings.

Q2.2 Whether GST paid on sanitary fittings, such as tiles, commodes. a bath tub, wash basin, PVC pipes and other bath room sanitary fittings and consumables meant for repair of existing sanitary fittings shall be available for ITC?

Answer- ITC will not be available to the extent of capitalization of sanitary fittings.

Q.2.3 Whether GST paid on labour supply for carrying out repair of electrical installation and/ or sanitary fittings shall be available for ITC, where material and supervision is provided by the applicant?

Answer- ITC will not be available to the extent of capitalization of service of labour supply.

Q2.4 Will it make any difference if aforementioned works are carried out in a composite manner as a works contract, where material as well as labour is supplied by a contractor as a composite supply under works contract?
Being routine repairs, the amount spent on the above mentioned all scenarios are charged to revenue as per accounting standards.

Answer- ITC will not be available for works contract service to the extent of capitalization of supply of goods and services.

Q. 3. Furniture & Fixture repairing work

Q 3.1 Whether GST paid on wood, board, mica, tapestry, paint, polish and other consumables meant for repair of existing furniture & fixtures shall be available for ITC?

Answer- ITC for GST paid on supply of above mentioned goods will be available in accordance with Section 16 of CGST/RGST Act, 2017.

Q3.2 Whether GST paid on labour supply for carrying out repair of furniture & fixtures shall be available for ITC, where material and supervision is provided by the applicant?

Answer- ITC will be available for service of labour supply in accordance with Section 16 of CGST/RGST Act, 2017.

Q3.3 Will it make any difference if aforementioned works are carried out in a composite manner as a works contract for carrying out repair and maintenance job on movable furniture & fixtures such as, Sofa, Table, Chairs, Door, Cabinets, etc. where material as well as labour is supplied by a contractor as a composite supply under works contract?
Being routine repairs, the amount spent on the above mentioned all scenarios are charged to revenue as per accounting standards.

Answer- ITC will be available for GST paid on composite supply of goods (furniture & fixtures) and services (manpower supply) in accordance with Section 16 of CGST/RGST Act, 2017.

Q3.4 whether input tax credit can be availed by the applicant of GST paid on purchase of new ready to use furniture such as chairs, etc, in terms of section 17 of the RGST Act, 2017?

Answer- ITC will be available for GST paid on purchase of new ready to use furnitures in accordance with Section 16 of CGST/RGST Act, 2017.