Dear Experts
Plywoods, Mica, Fevicol & Paints purchased for making Tiles display stand at Tiles Showroom. The stand has been fixed with on the floor for supporting purpose. The expenses has been classified as fixed assets and accounted in books of accounts under the head as 'Showroom Display Fixtures'. This has been removable and fixed with other place after making some additional work. Also this has been frequently altered the structures depends upon the tiles size and giving better view to customers.
Whether ITC is eligibe for the above said expenses or blocked u/s 17(5) of CGST Act, 2017.
Thank You
Taxpayer can claim Input Tax Credit for showroom display fixtures under Section 17(5) CGST Act 2017 A taxpayer purchased plywoods, mica, fevicol, and paints to create a tiles display stand for their showroom, capitalizing the expenses as 'Showroom Display Fixtures.' The stand is floor-mounted but removable and frequently altered based on tile sizes. The query concerned whether Input Tax Credit is eligible or blocked under Section 17(5) of CGST Act, 2017. Multiple experts concluded that ITC is allowable since the display stand constitutes movable property used for business purposes rather than construction of immovable property, thus not falling under Section 17(5) restrictions. (AI Summary)
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