TaxTMI 
TaxTMI 
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 ??
ITC ON REPAIRS OF FACTORY BUILDING (NOT ADMIN BUILDING) BILLS
14 Dec 2017 
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12394 Views Asked by
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. (AI Summary)
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. (AI Summary)