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of <h1>ITC Denied Under GST Only If Repair or Renovation Expenses Are Capitalised as Per Section 17(5)(c) and (d)</h1> Input Tax Credit (ITC) under GST is denied for expenses related to repair, renovation, alteration, or reconstruction only if such expenses are capitalised in the books of accounts, as per section 17(5)(c) and (d) of the CGST Act. Expenses recorded as revenue cannot lead to ITC denial. The terms 'inputs' and 'capital goods' are defined in sections 2(59) and 2(19) of the CGST Act, with capital goods being those whose value is capitalised in the books and used in business. Clarification in Circular No. 125/44/2019 confirms that ITC is available on inputs, including stores and spares, unless restricted under section 17(5), and that items charged to revenue cannot be treated as capital goods. Therefore, the key factor in denying ITC is whether the expense has been capitalised in the accounting records.
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