Input Tax Credit

[Ashwin Bhalakiya]

My company have a factory. In the factory done painting work for which given works contract. Received bill with GST. Can we take Input Tax credit or put all as expenses.

I have also changed Roofs of Factory which includes Roof cost as well as fitting Charges. On This can my Company claim ITC

Pl give your opinion.

 

[Sadanand Bulbule]

Dear

Refer the following clause of Section 17[5] of the CGST Act, which blocks ITC in respect of:

(d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.

Explanation.––For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property;

[Ganeshan Kalyani]

Sir, if the expenses are not capitalised in the books of accounts, then the ITC is eligible. 

[Shilpi Jain]

This being repair/renovation expense, eligible if not capitalised.

AI Summary

Input Tax Credit eligibility: ITC blocked for capitalised construction/renovation of immovable property but allowed if not capitalised.
Input tax credit is blocked under Section 17(5)(d) for goods or services used in construction, reconstruction, renovation, additions, alterations or repairs of an immovable property (other than plant or machinery) to the extent those costs are capitalised; if painting, repair or roof-replacement costs are not capitalised but expensed, ITC is indicated to be available.