Credit of Renovation expenses done in a shop

[Pradeep Singhi]

Whether credit can be taken for renovation expenses done in a shop ?

AI Summary

Input tax credit for renovation expenses depends on whether costs are revenue expenditure or capitalised to property.
Input tax credit for renovation expenses depends on accounting classification: if renovation costs are treated as revenue expenditure and charged to profit and loss they are generally eligible for credit; if capitalised to the immovable property they fall within the restriction on credit for immovable property and are not eligible. Accounting treatment must follow accepted principles and cannot be manipulated to change GST eligibility.