Availing of ITC

1). He cannot claim ITC since ITC on Works Contract is specifically BLOCKED U/s 17(5) clause (c) of the CGST Act 2017.

2). Yes your client can claim ITC on Wheel Alignment Machinery being a Capital Goods and the same is being used in the course of business, provided that all the FOUR Conditions as laid down U/s 16(2) of the CGST Act 2017 is satisfied before claiming ITC.

Kindly Note that your client should not claim Depreciation U/s 32 of the Income Tax Act 1961 on the Tax component of the Capital Goods ( Machinery ). The Machinery needs to be capitalized with the amount without GST component in the Balance Sheet. [ Section 16(3) of the CGST Act 2017 ].

The GST input paid for cement for flooring work, Paid for interlock, paint, steel etc. can not be taken as its specifically covered under section 17(5) of the CGST act as work contract services. Moreover, Input GST will be available on wheel alignment machinery provided depreciation on input can not be taken.

Sir, as flooring work is used for furtherence of the business right ? so ITC can be availed right ?

Pls refer the block credit provisions 

No Sir he cannot claim ITC on flooring work even though it is for furtherance of business. It is a Blocked Credit U/s 17(5) clause (c) of the CGST Act 2017.

Section 16(1) of the CGST Act 2017 clearly specifies that ITC on Inputs, Input Services and Capital Goods "used in the course of or furtherance of business" can be claimed in the electronic credit ledger.

But there are certain transactions under GST, Input Tax Credit ( ITC ) of which shall not be available even if used in the course or furtherance of business.

There is one Section under CGST Act 2017 - Section 17 : "APPORTIONMENT OF CREDIT and BLOCKED CREDIT". Sub Section (5) of Section 17 of the CGST Act 2017 enumerates certain transaction, the ITC of which shall be "BLOCKED". It starts with a Non Obstante Clause i.e. "Notwithstanding anything contained in Section 16(1) of the CGST Act 2017....." Which means that Section 17(5) overrides the Provision of Section 16(1). So even if the specified supply of goods or services are being used in the course or furtherance of business, the ITC shall not be available. For example : ITC on Office Building is not available ( Works Contract U/s 17(5) clause (c) ), even though it is for business purpose. Business cannot be done without Office Building. But what to do ??? The GST Law is framed in this way. A huge dispute is going on in the Trade & Industry with regard to this Provision ( especially the Works Contract part ).

Hope you understood Sir...

Regards,
Shivam RC.

Okay Sir... And thanks for giving your thoughts

Your most Welcome Sir...