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?

AI Summary

CA Firm Denied Input Tax Credit on Office Furniture Due to Section 17(5)(c) of CGST Act Restrictions A CA firm inquired about the eligibility of Input Tax Credit (ITC) for materials purchased to make office furniture. The discussion revealed that ITC eligibility depends on whether the furniture is classified as movable or immovable. Movable furniture generally qualifies for ITC, while immovable fixtures do not. The firm confirmed the furniture would be capitalized and that a contract for labor, not materials, was in place. Ultimately, it was determined that ITC is not admissible due to Section 17(5)(c) of the CGST Act, which restricts ITC on capitalized assets like furniture.