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Input credit

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This query is : Resolved

Chandan Mukherjee (Querist)

11 December 2018 Dear Sir/Madam,
Our company purchased cement, brisk, TMT bars,steel windows and Flash Doors for making a new shed. My question is the input credit can we availed and utilized of all said items.

Thanks & Regards
Chandan Mukherjee

CA. Mayur M. Mamtora

CA. Mayur M. Mamtora (Expert)

11 December 2018 No you cannot avail input credit on goods/services used for construction of immovable property, even if such construction is for furtherance of business. Such credits are called blocked credits and GST on such blocked credits cannot be availed as per section 17(5) of CGST Act.

Section 17(5)(d) - goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.
Explanation.––For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property.

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