gst credit eligibility

[Ramakrishnan Seshadri]

Dear sir.

We are the manufacturers of automobile parts supplying to OEM. We are having a paintshop with sandbooth area.

We have shifted the sandbooth area from one place in the factory paintshop to another place in the paintshop.

For that work done, the service provider has raised invoice charging gst.

My question is whether gst paid on that invoice , credit is eligible or not. shall we take credit on that

Thanks & Regards,

S.Ramakrishnan

[SHIVKUMAR SHARMA]

Yes, You can take ITC on that Invoice.

[DR.MARIAPPAN GOVINDARAJAN]

Yes, you can.

[YAGAY and SUN]

Since this activity i.e. shift of paintshop from once place to another place in your factory premises and connected with furtherance of business, therefore, in our view you are eligible to avail ITC on such activity.

AI Summary

Input tax credit eligibility affirmed for GST charged on intra factory relocation of production equipment when connected to business.
Services incurred for relocating a production area inside factory premises that are connected with the furtherance of business qualify for input tax credit; GST charged by the service provider on such intra factory shifting of plant or activity is eligible for ITC, subject to usual documentary and eligibility requirements.