Claim ITC or not on sanitary, electrical, tiles fitting and paint work at rental business property

You can take credit of whatever is movable in nature. Movable means that such goods are capable of being moved without damage.

If unable to move and capitalised in books of accounts to immovable property, then credit cannot be taken. 

However, the judgement of Safari Retreats is pending before the Supreme Court. If it comes in favour then such credit could become eligible. You can now avail and reverse the credit so that you can re-avail in the future in case Supreme Court rules in favour of the assessee.

The answer depends on what you are fitting and how it is accounted for.

Items that are generally BLOCKED under Section 17(5)(c) and (d):

- Tiles, flooring, and painting permanently affixed to the rental property , these become part of the immovable property

- Wiring embedded inside walls or cemented into the building

- False ceiling, partition walls fixed to the structure

Items where ITC is generally ALLOWED:

- Air conditioners (movable, can be uninstalled without damage to the building)

- Fans, light fixtures on simple brackets that do not damage the structure on removal

- Electrical panels/switchboards that are freestanding or bolt-mounted

- Any equipment classified as plant and machinery under your books

The movable test: if removing the item damages the building, it has become immovable and ITC is blocked. If it can be removed cleanly and reused elsewhere, it likely qualifies.

Accounting treatment: if you capitalise the item to an immovable property asset account, your own books support the blockage. If expensed to repairs and maintenance, ITC is more defensible for items that are in fact removable.

Note: There is a pending dispute at higher judicial fora on exactly where the line falls for items like sanitary fittings, so maintain clear records of what is actually movable.

This [GST ITC Section 17(5) blocked credit guide](https://taxgarden.in/blog/gst-on-csr-expenditure-itc-block-section-17-5-india-2026) covers the logic of blocked credits under Section 17(5) with worked examples.