Dear Experts,
WE are not clear about ITC eligibility to avail on the following items.
1. New investments made and Booked in Factory Building account such as Purchase of Steel, Cement, paint, Labor charges
2. New Investments made and Booked in Factory Building account such as Partition items like panel wall, aluminum walls, puffed panels
3. Repair expenses incurred and Booked in Building maintenance such as Purchase of Steel, Cement, paints, labour charges, partition items like puffed walls, aluminium walls partitions etc
ITC generally ineligible for factory building investments under GST; restrictions under Section 17(5) noted for prefabricated buildings. A company inquired about the eligibility of Input Tax Credit (ITC) under GST for expenses related to factory building investments and repairs, such as steel, cement, and labor charges. Experts responded that ITC is generally ineligible for expenses capitalized in the construction of immovable property, including repairs and renovations, unless charged to the Profit & Loss account. Some experts advised consulting specific court judgments for large credit amounts. One expert noted ITC eligibility for repair expenses but mentioned potential legal challenges. Another highlighted restrictions under Section 17(5) for prefabricated building expenses. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
