AVAILEMENT OF GST CREDIT

[SURYAKANT MITHBAVKAR]

We are manufacturing of Pharma Machinery registered under GST Act. We have buy new Factory Gala. The maintaining the same we have did some renovation work in the same gala & capitalised the same in our books. The vendor who did work has issued GST Tax invoice charging GST whether we are eligible to avail GST credit for the same.

AI Summary

Manufacturing company ineligible for GST credit on capitalized renovation expenses under Section 17(5) of CGST Act, 2017. A manufacturing company registered under the GST Act inquired about the eligibility to claim GST credit on renovation expenses for a newly purchased factory space, which were capitalized in their books. Several experts responded, stating that input tax credit (ITC) is not available for renovation expenses capitalized as immovable property under Section 17(5) of the CGST Act, 2017. The law specifies that ITC cannot be claimed for construction-related expenses unless they pertain to plant and machinery. Some experts suggested treating renovation expenses as revenue expenditure to potentially qualify for ITC.