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

Company May Claim ITC for Factory Painting and Roof Repairs if Not Capitalized, Per Section 17(5) CGST Act. A company inquired about claiming Input Tax Credit (ITC) for painting work and roof replacement at its factory. The responses highlighted that under Section 17(5) of the CGST Act, ITC is blocked for goods or services used in constructing immovable property unless it pertains to plant or machinery. However, if these expenses are not capitalized in the company's books, ITC may be claimed. The consensus among the respondents was that if the painting and roof work are considered repairs or renovations and not capitalized, the company could be eligible for ITC.