Whether gst credit is available on Pre fabricated structures ?

[Harshit Sanghvi]

Whether gst credit is available on Pre fabricated structures ?

[Shilpi Jain]

Advance rulings say not eligible. Though if these are structures which can be dismantled and erected elsewhere credit should be eligible

[KASTURI SETHI]

Not eligible. Hit by Section 17(5)(d) of CGST Act. However, the query is too brief to reply fool-proof. Pl. elaborate your query so as to enable the experts to explore possibility, if any, in your favour.

[Harshit Sanghvi]

RCC wall of 10 feet is built to support the structure and on that pre fabricated structure is made.

structure can be dismantled and can be shifted else where with some damage.

it will be used as factory so it is permanent in nature with no intention to shift even if it can be shifted.

[RAMASWAMY Advocate]

Sir,

In my view input tax credits are not available for pre fabricated structures.

[Ganeshan Kalyani]

The provision also states that if expense is not capitalised in books of accounts then credit would be eligible.

[Shilpi Jain]

It is a highly interpretative issue. If the amount is huge suggest to take credit and not utilize. Else take and reverse it under protest and go for a refund to settle the matter fast.

[Harshit Sanghvi]

Thank you all experts for prompt replies. I highly appreciate it.

[YAGAY and SUN]

In our view, which is based on following Advance Ruling ITC will not be available on Pre Fabricated structures:-

Case Name : In re Embassy Industrial Parks Private Limited (GST AAR Haryana).- 2019 (6) TMI 1580 - AUTHORITY FOR ADVANCE RULING, HARYANA

[ABHISHEK TRIPATHI]

Dear Dilip Sir,

Everything boils down to whether this is immovable property or not? In all likelihood, prima-facie, it is a immovable property. But intricacies are always there to see and judge the real characteristics. And that requires a proper research.

[Shilpi Jain]

Advance rulings are highly mis guiding

[YAGAY and SUN]

Advance Ruling are not confusing but are pro-revenue. Appellate mechanism is still available if any person is aggrieved by such rulings.

[Shilpi Jain]

At the appellate level also it is department officers only. So unless writ filed in HC, may not get the right view.

AI Summary

Input tax credit on pre-fabricated structures may be denied when treated as immovable property, subject to dismantlability.
ITC availability on pre-fabricated structures depends on classification as immovable property. If characterised as immovable and capitalised, credit is generally disallowed under the blocked credit principle; if dismantlable and not capitalised as part of immovable property, credit may be claimable. Factual tests of permanence, intended use, and accounting treatment control the outcome; advance rulings have tended to deny credit, and practitioners suggest tactical measures such as claiming but not utilising credit, reversing under protest, or seeking refunds while pursuing appellate remedies.