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.
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.
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