ITC ON REPAIRS ON CONSTRUCTION

[RV PERUMAL]

SIR, A FACTORY CARRIED OUT REPAIRS AND RENOVATION ON THEIR FACTORY BUILDING. WHETHER THEY ARE ELIGIBLE TO TAKE ITC ON CEMENT, STEELS AND OTHERS AS PER SEC.16 OR NOT ELIGIBLE AS PER SEC.17(5)(d). KINDLY POST AND GUIDE

[Shilpi Jain]

If such repair works are not capitalised, credit would be eligible if the business is a taxable business.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shilphi Jain.

[NEERAJ KUMAR, RANCHI]

It is available only in certain cases:

If it is received for construction of plant or machinery on your own account . Further Plant and Machinery has been defined as :

"plant and machinery" means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes :

(i) land, building or any other civil structures;

Now you can easily decide whether it will be available to you or not.

[KASTURI SETHI]

Sh.R.V.Perumal Ji,

The following decision of AAR Rajasthan will help you in arriving at correct decision:-

2019 (5) TMI 248 - AUTHORITY FOR ADVANCE RULING - RAJASTHAN - IN RE : RAMBAGH PALACE HOTELS PVT. LTD.

[RV PERUMAL]

MY SINCERE THANKS TO ALL . I ALWAYS THANKFUL TO SHRI. KASTURI SETHI SIR FOR A DETAILED REPLY IN EACH AND EVERY TIME.

ONCE AGAIN , THANKS TO ALL

AI Summary

Factory Seeks Clarity on ITC Eligibility for Cement and Steel in Building Repairs Under GST Regulations A factory conducted repairs and renovations on its building and sought clarification on the eligibility for Input Tax Credit (ITC) on materials like cement and steel under GST regulations. Responses varied: one indicated ITC eligibility if repairs are not capitalized and pertain to taxable business activities, while another noted ITC is available only for construction related to plant or machinery, excluding civil structures. A reference to a decision by the Authority for Advance Ruling in Rajasthan was provided for further guidance. The original inquirer expressed gratitude for the detailed responses received.