ITC available on materials purchased for making furniture in office

[JIGAR SHAH]

We are CA firm and have recently purchased a new office. For making furniture in the office, we have directly purchased ply, wood and other materials. Can we take ITC, of the material so purchased to make the furniture?

[KASTURI SETHI]

Whether furniture will be capitalized or not ? Will there be any contract for fixation of furniture ? Whether contract for furniture will be with material or without material with the contractor ? Pl.reply to explore the possibility of availability of ITC.

[KESHAV GROVER]

Sir the test to take ITC is Movability or Immovability.Furniture like tables,chairs are generally movable.Fixtures are generally immovable.There are also things which are though movable but we use them as a immovable like doors,windows etc.

If your furniture is movable then itc is available otherwise it will be treated as part of building and ITC will not be available.

Kasturi sir,please correct me if i am wrong at any where.

[KASTURI SETHI]

Dear Sh.Keshav Grover,. Why are you expressing your opinion ? The querist has not bothered to answer my queries. It implies that the Querist is not interested. This forum is free of cost. So some querist s post their queries and lie dormant. Where sites charge fee for a query, the Querists think twice before posting and also well draft the query in detail. Some Querists even do not bother to express thanks."Free lunch" is not valued by the people. This is a fact and way of the world.

[KASTURI SETHI]

Dear Sh.Keshav Grover, Your reply is based on hypothetical situations because of absence of complete facts. Hence no comments on your reply. Our any reply cannot be fool proof in the absence of true and complete facts.

[JIGAR SHAH]

Dear Mr Kasturi,

Please accept my apology for not responding timely. With regards to your question against my query:

"Whether furniture will be capitalized or not ?"- Yes, it will be capitalised.

"Will there be any contract for fixation of furniture ?" - Yes, we have given the contract for fixation of furniture as well as making the same.

"Whether contract for furniture will be with material or without material with the contractor ?" - Contract for furniture is without material. Only labour/contract charges.

Thank you in advance.

[JIGAR SHAH]

Dear Mr Keshav Grover,

Thank you for responding to my query.

Moreover, the furniture is partly movable and partly immovable.

[KASTURI SETHI]

ITC is not admissible as it is hit by Section 17 (5) (C) of CGST Act.

[Ganeshan Kalyani]

Input Tax Credit (ITC) is not eligible for purchase of furniture as well as the service availed for fixing it in the office. As both are covered u/s 17 of the CGST Act,

[JIGAR SHAH]

Thank You very much, Mr.Kasturi Sethi and Mr.Ganeshan Kalyani.

[RAHUL GAIKWAD]

It means Purchases of Chair for Office Purpose also not admissible.?

AI Summary

Input Tax Credit disallowed for office furniture and installation services under Section 17(5)(c) CGST Act.
ITC is not available on the purchase of furniture or on services for fixing it because such supplies are blocked under Section 17(5)(c) of the CGST Act. This applies to materials bought to make furniture and to installation services, even where the assets are capitalised or partly movable.