ITC ON REPAIRS OF FACTORY BUILDING (NOT ADMIN BUILDING) BILLS

[SAFETAB LIFESCIENCE]

Respected Sir,

We have done some repair works in Factory Building like painting, renovation, debris removal. The work was carried out by GST registered supplier and given bills to us with GST. Shall we take ITC of this ??

[Vamsi Krishna]

As per Sec.17(5) ITC of GST paid on works contract services will be allowed only if the output is also works contract service. In your case ITC is not admissible ( you being manufacturing unit having factory)..

[SAFETAB LIFESCIENCE]

Respected Sir,

We have not entered any Works Contract. He supplied materials and done work with his labour and raised Tax Invoice. He has done some repair work like maintenance of machinery and he has done maintenance of building

[CSSANJAY MALHOTRA]

ITC is admissible if the expense is debited in P& L .

[Guest]

no sir it should be capatilise .. so no need to show in p & l account

[CSSANJAY MALHOTRA]

No ITC if capitalised.

[Himansu Sekhar]

Credit on repair of factory building is admissible.

AI Summary

Input Tax Credit on factory building repairs depends on works contract classification and whether costs are capitalised. Query on entitlement to Input Tax Credit for GST-charged invoices for factory building repairs: one view relies on Sec.17(5) to deny credit where the service is a works contract and the recipient's output is not a works contract; other observations stress supplier classification (materials plus labour versus works contract) affects eligibility. Accounting treatment is decisive in practitioner advice: ITC is said to be claimable if the expense is debited to profit and loss as a revenue expense and not claimable if the expenditure is capitalised.