TaxTMI 
TaxTMI 
ITC on Plywoods, Light Fittings
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....TC on Plywoods, Light Fittings<br> Query (Issue) Started By: - ELUMALAI KALI Dated:- 20-6-2025 Last Reply Date:- 25-6-2025 Goods and Services Tax - GST<br>Got 8 Replies<br>GST<br>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 asset....
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....s 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 Re....
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....ply By Sadanand Bulbule: The Reply: Yes. You are eligible for ITC on such goods as long as they are used in the course of furtherance of business. It is not blocked under Section 17[5] of the Act. Reply By YAGAY andSUN: The Reply: The eligibility of Input Tax Credit (ITC) on the purchase of Plywoods, Mica, Fevicol & Paints used in making a tiles display stand depends on how the stan....
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....d is treated and the nature of its use in business, in light of Section 17(5) of the CGST Act, 2017. Legal Analysis: Section 17(5)(c) and (d) of the CGST Act, 2017 restrict ITC on: * Works contract services when supplied for construction of immovable property (except where it is an input service for further supply of works contract service), and * Goods or services received for construct....
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....ion of immovable property (other than plant and machinery) on own account, even if used in the course or furtherance of business. Key Considerations: * Nature of the Asset (Movable or Immovable): * If the display stand is fixed to the floor, but can be removed, relocated, or restructured without substantial damage or civil construction, it may be treated as a movable asset. * Since the stru....
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....cture is frequently altered and moved depending on tile sizes, it shows characteristics of a movable fixture rather than a permanently fixed immovable property. * Purpose of Use: * The display stand is used in the course or furtherance of business, specifically for marketing and customer presentation, which supports business activities. * Capitalisation in Books: * Though it is capitalised....
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.... as "Showroom Display Fixtures", the accounting treatment is not the sole criterion for ITC eligibility. What matters more is whether the asset qualifies as immovable property under GST law. Conclusion - ITC Eligibility: Based on the facts provided: * The display stand appears to be movable and used for business promotion. * Since it is not an immovable property, and no civil works or perman....
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....ent affixation is involved, the restriction under Section 17(5)(c)/(d) does not apply. * Hence, ITC on inputs like Plywoods, Mica, Fevicol, and Paints used for making the stand is allowable, provided other general conditions for availing ITC are satisfied (like possession of tax invoice, actual receipt of goods/services, etc.). Reply By Shilpi Jain: The Reply: Credit should be eligilbe conside....
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....ring that its a business expense and not falling under the category of construction of immovable property or any other blocked credit under section 17(5). Reply By Ganeshan Kalyani: The Reply: Further, while capitalising please see if the GST portion has not been capitalised. Reply By Padmanathan KV: The Reply: I agree with views of experts. Provisions of section 17(5) is not attracted in the ....
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....present case. Reply By KASTURI SETHI: The Reply: After in agreement with the experts, in simple words, such expenses must be reflected in Profit and Loss Statement. Reply By ELUMALAI KALI: The Reply: Dear Experts Thanks a lot for your valuable reply. Reply By Padmanathan KV: The Reply: I beg to disagree here. All expenditure need not to reflected in profit and loss account for claiming ITC.....
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.... For example - Plant & machinery, furniture and fitting are eligible for ITC even if they are entered in Balance Sheet. The condition of capitalization is applicable only for "construction" in section 17(5)(c) and (d). In the present case, the items used are for making showroom fitting/ furniture and not for construction of immovable property. Hence, even if they are entered in Balance Shee....
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....t as Fixure/ furniture, ITC is available in my humble opinion.<br> Discussion Forum - Knowledge Sharing ....