Input Tax Claim against Interior Works

[Muraleedharan M]

Respected Sir,

Whether we take ITC against Interior Work designing & Materials,

Because, we are going to open a new office for our company. In which we are getting Invoices for Interior Consultancy, Materials, etc.,

Kindly Guide me. Thanking You,

[Alkesh Jani]

Sir,

The interior designing services can be classified under SAC 998391, and same does not fall within the ambit of Section 17(5) of the CGST, Act, 2017. Therefore, you are eligible for ITC with regards to Interior designing work only and the cost of material should be reimbursed vide Invoice.

Moreover, the material such as, AC, chairs, Table etc. should be capitalized in the book of Accounts. I invite experts to correct me, if mistaken.

[KASTURI SETHI]

ITC is available.

[Alkesh Jani]

Thanks Sh. Kasturi ji sir

[Muraleedharan M]

Dear Sir,

Thanking You for your valuable Information. So, We can take Input tax Credit on both Interior Consultancy Charges & Interior Materials like Electrical, Furniture, Wood, etc.,

Once again Thanking You.

[Ganeshan Kalyani]

works contract includes improvement, maintenance etc. which is also mentioned under section 17 (5) of CGST Act. hence in my view credit may be questioned.

[YAGAY andSUN]

In our view this is a arguable matter. Better to seek an Advance Ruling on it.

[YAGAY andSUN]

In a recent judgment ITC on GST paid on interior designer/consultant fee has been allowed.

[Guest]

Dear Sir
If possible, Please provide notification.

AI Summary

Input tax credit eligibility for interior design services generally available; material and works-contract exceptions may limit credit. Interior designing services under SAC 998391 are generally regarded as eligible for Input Tax Credit and materials should be invoiced/reimbursed and capitalised when they are capital goods; however, where interior works qualify as a works contract or fall under Section 17(5) exclusions the credit may be questioned, and parties are advised to seek an advance ruling.