TaxTMI 
TaxTMI 
My Client is Furniture Manufacturer and He is also manufacturing furniture for Banks according to Bank design and demand. In such case he purchases various item i.e plywood, laminates, hardware item for manufacturing of Furniture which is moveable or immovable. Then ITC is admissible for My Client.?
ITC OF PLYWOOD AND HARDWARE ITEMS
21 May 2019 
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Input tax credit for furniture depends on whether the supply is movable goods or a works contract, affecting credit availability.
A furniture manufacturer may claim input tax credit on inputs and input services used to manufacture movable furniture. If the supply is effectively a works contract or results in immovable property for the recipient, inputs used for immovable property do not qualify for ITC and GST charged by the supplier is a blocked credit for the recipient under section 17(5) of the CGST Act, 2017. An AAR decision from Rajasthan on similar facts is cited as supportive authority. (AI Summary)
A furniture manufacturer may claim input tax credit on inputs and input services used to manufacture movable furniture. If the supply is effectively a works contract or results in immovable property for the recipient, inputs used for immovable property do not qualify for ITC and GST charged by the supplier is a blocked credit for the recipient under section 17(5) of the CGST Act, 2017. An AAR decision from Rajasthan on similar facts is cited as supportive authority. (AI Summary)