Gst credit

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shwetha (Querist)
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30 June 2018 Dear experts,

Our clients were into commercial training and coaching, in order to set up branches they used to get building on rented basis on certain terms and aggrements for 1,2,5,or10yrs based on their needs.

My question is in order to start and run business, they used to set up or make renovation of rented premises in order to start classes it includes partition works etc. Basically works contract.

Can GST credit claim on Such partition works??
Without such expenditure they cannot start their business itself.
Few says it's of works contract credit not allowed.
Somebody suggest.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 July 2018 Please read section 17(5) of CGST Act 2017 very carefully. ITC not allowed for "works contract services when supplied for construction of immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service". In your case it is not construction of immovable property but only renovation. Therefore in my view you can claim ITC.

shwetha

shwetha (Querist)
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01 July 2018 Thank u sir
Can you share link for itc concepts or which book to be referred?

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