Can I get Input Tax credit of Shed used to protect machinery from water

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

Replies (13)
Quick Summary
This discussion explores the eligibility of claiming GST Input Tax Credit (ITC) on materials used to construct a shed for protecting factory machinery and raw materials from water and sunlight. While some believe ITC can be claimed if the shed is considered movable and part of plant & machinery, others point to Section 17(5)(c)/(d) of the CGST Act, which often blocks credit for construction materials. It's highlighted as a contentious issue, especially for high-value structures, with a recommendation to seek professional legal opinion for clarity and documentation.

Yes ITC can be claimed
If you are using construction materials like cement , iron , steel then as per section 17(5)(d) of the CGST act 2017 , it's block credit , you can not take input tax credit . please confirm with others also .

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

I think ITC can be claimed

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)

If it is coming under plant&mechiner item ,u may take itc,but this items used from ur stock,itc may be block at that proportionate value of goods purchased.

@ 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 Plant & Mechinery item to claim itc

. Air conditioners and electric fans.

Mains, service lines and switch gears.

Scaffolding and ladders.

Electrical transformers.

Telephone systems.

Safe deposit lockers.

Data-processing machines, computers and printers.

Tools and instruments.

Books containing technical know-how.

Bins and shelves in a factory.

Cylinders for storing gas.

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.

Asset value will increase current year.

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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