Itc query

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This query is : Resolved

K Kasiraman (Querist)

14 June 2018 Dear Sir,

We are an manufacturing concern, deals with chemicals, for this we are constructing small portion for storage of chemicals.
our query Is whether, ITC can be availed in monthly GST for construction of above said building.

Regards
K.Kasiraman

CA Padmasri Manyam

CA Padmasri Manyam (Expert)

14 June 2018 Construction of building (to the extent capitalized in books) is not eligible for ITC as per Section 17(5)(c) of CGST Act, unless the same is used for providing works contract services.

K Kasiraman

K Kasiraman (Querist)

14 June 2018 thank you madam, but as per gst anything purchase or construction during the furtherance of business it can be availed us ITC. IN THIS ANY CHANGE OR WE SHOULD AVOID TAKING OF ITC.

CA Padmasri Manyam

CA Padmasri Manyam (Expert)

14 June 2018 As per Section 16 of CGST Act, inward supply of inputs, input services, capital goods procured for furtherance of business or intended to be used in the business are eligible for input tax credit unless the same is not covered under blocked credits specified under Section 17(5).
In the present case, the inward supply of construction services are covered under blocked credits. Therefore, not eligible for input tax credit.

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