ITC can't be claimed on Lift procured and Installed in Hotel Buildings

The Madhya Pradesh bench of the Authority of Advance Ruling has held that input tax credit can not be claimed on procurement and installation of a lift in a hotel building. The applicant is constructing a hotel in Madhya Pradesh and sought an advance ruling to clarify if ITC can be claimed on the procurement and installation of a lift in the hotel building as the purchase has been used in the furtherance of the business. The MP AAR held that input tax credit shall not be available on tax paid on lifts procured and installed in hotel buildings as the same is blocked in terms of Section 17(5) d) of the CGST Act 2017 and is an integral part of the building.