TaxTMI 
TaxTMI 
Whether gst credit is available on Pre fabricated structures ?
Whether gst credit is available on Pre fabricated structures ?
20 Oct 2021 
12 Replies 
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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. (AI Summary)
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. (AI Summary)