Input crdit

[mathur ramachandran]

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

AI Summary

Input tax credit denied for self-constructed immovable property; practitioners warn of legal uncertainty and enforcement risk.
Input tax credit is not available for goods or services received for construction of an immovable property (other than plant or machinery), including reconstruction, renovation, additions, alterations or repairs to the extent capitalised, even when used in the course or furtherance of business. Although some decisions and rulings have been relied on to support credit claims, favourable orders are under challenge and certain advance rulings have refused relief; claiming credit risks departmental notices, and reversing credit "under protest" is debated as to its legal efficacy and risk.