INPUT CREDIT ON REPAIRS

[SURYAKANT MITHBAVKAR]

We have done repair work like painting ,Wall repairs, putting tiles, etc. in our factory gala and amount debited to repairs & Maintainnace.

Can we avail Input Credit for such transaction.

AI Summary

Debate on Input Tax Credit for Factory Repairs: Eligible if Revenue Expenditure, Ineligible if Capitalized per Section 17(5) CGST Act. A discussion on a forum revolves around the eligibility of Input Tax Credit (ITC) for repair expenses under the Goods and Services Tax (GST). The initial query concerns whether ITC can be claimed for repairs like painting and wall repairs in a factory. Responses vary: one suggests ITC is eligible, while others argue it depends on whether the repairs are capitalized. According to Section 17(5) of the CGST Act, ITC is ineligible if repairs are capitalized as part of immovable property but eligible if treated as revenue expenditure. The discussion references accounting standards and legal interpretations.