Is GST Input Can be claimed regarding these items related exp.
This query is : Resolved
Quick Summary
02 February 2026
For Making Factory Building,
For Making Warehouse ,
For Making office Building,
and Renovation exp or Repairs and Maintenance for all the above mentioned assets, whether input can be claimed,
Please reply.
For Making Warehouse ,
For Making office Building,
and Renovation exp or Repairs and Maintenance for all the above mentioned assets, whether input can be claimed,
Please reply.
03 February 2026
GST ITC is NOT available on construction of immovable property (including factory, warehouse, office), when capitalised, even if used for business.
Exception exists only for plant & machinery.
Exception exists only for plant & machinery.
Ram Avtar Singh
(Expert)
04 February 2026
GST Input Tax Credit (ITC) on the construction of a warehouse is generally restricted under Section 17(5)(d) of the CGST Act, as it is considered immovable property. However, recent supreme court rulings (Oct 2024) indicate that if the warehouse is constructed to provide taxable services like renting or leasing, ITC may be claimed.
Key Aspects of ITC on Warehouse Construction:
Blocked Credit: If the warehouse is for personal use or to store your own goods for business operations, GST paid on cement, steel, bricks, and works contracts for construction is not eligible for ITC.
Renting/Leasing Exception: If the building is used for renting or leasing (taxable service), ITC on construction materials and services may be allowed, as it is essential for generating that revenue.
Plant & Machinery: If the warehouse is classified specifically as "plant and machinery" (functional, rather than civil structure), ITC might be admissible.
Pre-engineered Structures: Some rulings suggest that if a warehouse is constructed using pre-engineered, detachable steel structures (not permanently fixed to the earth), it might not fall under the definition of immovable property, potentially allowing ITC.
Key Aspects of ITC on Warehouse Construction:
Blocked Credit: If the warehouse is for personal use or to store your own goods for business operations, GST paid on cement, steel, bricks, and works contracts for construction is not eligible for ITC.
Renting/Leasing Exception: If the building is used for renting or leasing (taxable service), ITC on construction materials and services may be allowed, as it is essential for generating that revenue.
Plant & Machinery: If the warehouse is classified specifically as "plant and machinery" (functional, rather than civil structure), ITC might be admissible.
Pre-engineered Structures: Some rulings suggest that if a warehouse is constructed using pre-engineered, detachable steel structures (not permanently fixed to the earth), it might not fall under the definition of immovable property, potentially allowing ITC.
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