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

Debate on GST Input Tax Credit Eligibility for Factory Building Repairs: Views on Capitalization vs. Expense Deduction A discussion on a forum addresses whether Input Tax Credit (ITC) can be claimed for repairs done on a factory building under the Goods and Services Tax (GST). The original query asks if ITC is available for repairs such as painting and renovation, performed by a GST-registered supplier. Various replies indicate differing views: one suggests ITC is not admissible for manufacturing units, another states ITC is admissible if expenses are debited in the profit and loss account, while others argue that if expenses are capitalized, ITC is not allowed. One contributor asserts that ITC on factory building repairs is permissible.