TaxTMI 
TaxTMI 
XYZ is buying plywood. He is getting the furniture done from this plywood from a carpenter. The resultant furniture is immovable in nature. Can XYZ take credit of the GST charged by the plywood supplier and the GST charged by the carpenter?
ITC on Furniture
17 May 2019 
4 Replies 
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Input tax credit denial for goods used in constructing immovable property - credit blocked under construction-of-immovable-property rule.
Input tax credit is unavailable for goods and services used to construct or create immovable property; plywood and carpentry services that produce furniture permanently affixed to land are excluded. The legal test focuses on attachment to the earth and permanency: items movable without dismantling remain goods, whereas items requiring dismantling and re erection are treated as immovable and fall outside credit eligibility. (AI Summary)
Input tax credit is unavailable for goods and services used to construct or create immovable property; plywood and carpentry services that produce furniture permanently affixed to land are excluded. The legal test focuses on attachment to the earth and permanency: items movable without dismantling remain goods, whereas items requiring dismantling and re erection are treated as immovable and fall outside credit eligibility. (AI Summary)