We are making a Steel/Iron Shed for our factory to avoid water/direct sunlight to machine.. we are installing shed just for protection of machine and rawmaterial..
Am I eligible to take GST itc on goods used in preparing Shed ? Like iron sheet iron pipes .?
Note: I am also taking ITC on machines purchased this month
No I only want to take credit of IRON pipes and sheets used in sheds. I am not using cement . It is totally movable. Please be clarify
Aman, ITC can be said to be eligible. As it is movable, does not damage due to removal, etc.
But department would dispute. As values could be high, suggest to obtain a written legal opinion having clarity on the following:
1. what is immovable property with supporting case laws
2. what is plant & machinery and eligibility of structures created for P&M - case laws available in favour and against
3. Documentation to be kept ready in case of dept. issue (if credit being claimed)
@ imthias Can you please clarify. I am installing shed to protect my machinery and raw material from damage due to water.. what is the issue in taking ITC.
Shed is for business purpose
I will take invoice.. seller will issue invoice and file the information in gstr1
Each and every requirement of GST law is followed.
Then what is the problem in taking ITC..
My turnover is less than 1.5 crore . Does it matter
The restriction arises out of Section 17(5)(c)/(d) of CGST Act. Even if in relation to business construction activities is restricted. Also, how it is capitalised in the books of accounts - as building/civil structure or plant & machinery is important.
So I can't take ITC of shed(movable) used in premises for protecting it from water And sunlight
It can be done but on case to case basis. This is a contentious issue. Where value is high take written opinion from professional.
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