GST ITC on repairs

[Madhavan iyengar]

A company has incurred expenses on repairs work, and painting work for admin and factory buildings and these expenses are debited to Profit and loss account

will ITC be allowable.on these expenses incurred for repair and painting work and debited to profit and loss account

AI Summary

Debate on ITC eligibility for GST on building repairs and painting; Section 17(5) may block credits. A discussion on the eligibility of Input Tax Credit (ITC) under the Goods and Services Tax (GST) for expenses incurred on repairs and painting of administrative and factory buildings. The main issue revolves around whether such expenses, when debited to the profit and loss account, qualify for ITC. One participant argues that ITC is not permissible under blocked credits as per Section 17(5). However, another participant contends that if repair expenses are not capitalized but treated as revenue expenditure, ITC should be allowed. The discussion emphasizes the importance of proper accounting treatment in determining ITC eligibility.