Sir,
My client, a Firm, is constructing their own building for office use and use as godown. They are a registered dealers under GST.and are in the business of trading.They have given contract to a construction firm for construction. The builder will issue a bill with GST. Can they claim the GST thus paid to the builder as input credit from their output tax liability on sale of their products in the normal course?
Kindly clarify
Thanking you, C A M S Ramachandran, Mobile 9447776812
Firm Cannot Claim GST Input Credit for Self-Constructed Building per Section 17(5)(d) of CGST Act, 2017. A firm constructing its own building for office and godown use inquired whether it can claim GST paid to the builder as input credit against its output tax liability. Multiple responses highlighted that according to Section 17(5)(d) of the CGST Act, 2017, input tax credit (ITC) is not available for construction of immovable property on one's own account. Some suggested reversing the credit under protest, pending legal outcomes, while others advised against claiming ITC due to ongoing legal challenges and the risk of receiving a show cause notice from the tax department. (AI Summary)
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