ITC on Construction of Warehouses
This query is : Resolved
Sunil Patel
(Querist)
20 January 2026
Hello.!
can we claim ITC on purchases for construction of warehouse such as cement, steel etc. The constructed warehouse is to be let out for rent and GST would be collected on the same. Considering the 55th meeting of the GST Council and the amendment in Amendment in section 17(5)(d) of CGST Act, whether ITC is available to claim & set off against future tax liability on rent collected from warehouse let out.
can we claim ITC on purchases for construction of warehouse such as cement, steel etc. The constructed warehouse is to be let out for rent and GST would be collected on the same. Considering the 55th meeting of the GST Council and the amendment in Amendment in section 17(5)(d) of CGST Act, whether ITC is available to claim & set off against future tax liability on rent collected from warehouse let out.
Dhirajlal Rambhia
(Expert)
22 January 2026
No, you cannot claim Input Tax Credit (ITC) on goods or services (such as cement and steel) used for the construction of a warehouse, even if it is built for letting out on rent.
The GST Council recommended a retrospective amendment, effective from July 1, 2017, to replace the phrase "plant or machinery" with "plant and machinery" in Section 17(5)(d). This change ensures the clause aligns with the restrictive definition of "plant and machinery" found in the Explanation to Section 17, which expressly excludes land, buildings, and other civil structures.
The GST Council recommended a retrospective amendment, effective from July 1, 2017, to replace the phrase "plant or machinery" with "plant and machinery" in Section 17(5)(d). This change ensures the clause aligns with the restrictive definition of "plant and machinery" found in the Explanation to Section 17, which expressly excludes land, buildings, and other civil structures.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- EPF ECR NEW FILE SEP 17TH 2026
- Depreciation Chart Companies Act
- Capital Gail Exemption Certificate
- Oct 2025 Invoices
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- GST on Renting godown to KFCSC for Storage of Raagi
- Under marginal scheme
- Import of Software Service.
- Capitalgain tax purposes for valuation report compulsory
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
