GST ITC- on Car Work Shop


This query is : Resolved 

Quick Summary
This discussion explores the eligibility for claiming Goods and Services Tax (GST) Input Tax Credit (ITC) on the construction of a car workshop. While ITC is generally not available for building construction, it may be claimable for elements considered 'Plant & Machinery' that are fixed to the earth, provided they don't fall under blocked credits as per CGST Act 2017.

(Querist)
25 August 2021 HI
My client is going to Start Car Wash Service. For which he spent 50L for Construction of Work shop. Whether he is eligible to take GST Credit on Construction of Work shop or not ?

25 August 2021 For building ITC not available.
Forr the purpose of claiming Input Tax Credit , foundation and structural support are included in the definition of Plant & Machinery and therefore the ITC can be very well claimed for the same.

26 August 2021 As per my opinion, ITC in works contract services is available only for plant & machinery fixed to earth by foundation or structural support, not for the construction of immovable property.

26 August 2021 ITC will not be available.

VANAJA RANI (Expert)
27 August 2021 ITC on capital goods is availed except the blocked credit of capital goods u/s 17(5) of cgst act 2017.


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