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Eligible for ITC

ITC / Input 417 views 4 replies
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802 Points Posted on 18 December 2018
Can I take ITC if we construct a factory & plant a machinery?
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On 18 December 2018 at 13:55 Report
Replies (4)
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1020 Points Posted on 18 December 2018
NO ITC is available for goods / services for construction of an immovable property on his own account .
BUT this rule doesn't apply to the construction of plant and machinery .ITC is available for those goods / services used in construction of plant and machinery for his own account.
4 Reply
On 18 December 2018 at 14:25
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Chartered Accountant
39039 Points Posted on 18 December 2018

ITC on construction of factory/ P&M. This needs to be broken up into the following: 

1. Construction related to plant and Machinery ( Including the foundation, structures ) where steel and cement is used. Eligible

2. Construction of building - Not available.

3. P&M which may result in immovable property. Eligible.

258 Reply
On 18 December 2018 at 16:29
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GST Practitioner
55067 Points Posted on 18 December 2018
Any expense towards Building if capitlised , ITC is block . yes you can avail credit on expense against Machinery ( Refer section 17(5))
301 Reply
On 18 December 2018 at 16:32
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CA Final student
7106 Points Posted on 18 December 2018
Itc cannot be availed on construction of building as per sec17(5).
but in case of plant and machinery you can claim itc
33 Reply
On 18 December 2018 at 23:30


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