Eligible for ITC on factory Construction

Sir
My Client is constructing factory building, the material used the construction like steel cement and other material are eligible for ITC ?

If it is eligible under under section or any circular

but as per my view u/s 17(5) ITC will not be availed
hence give me clarification on this
Thank You
Replies (5)
Quick Summary
This discussion clarifies whether Input Tax Credit (ITC) is eligible for materials used in factory construction. Generally, if construction costs are capitalised, ITC cannot be claimed as per Section 17(5) of the CGST Act. However, if expenses are shown in the Profit and Loss account, ITC might be claimable, though new constructions typically cannot be booked as revenue expenses in P&L.

@ AMBER if your client is capitalising the expenses incurred in the construction, then he/she cannot claim ITC on such goods rather if they are showing those expenses in the p&l then they can claim ITC
You yourself had mentioned the correct section , which states that ITC on same is block (If capitalised)
@ Mr AMBER.,

The said section (17(5) of CGST Act) blocked the ITC. Also You have the details correctly. No more clarification for the ITC will not be avail.

@ Mr Ranga Raj.,
New construction can't be book as RM into PandL...
Thank you for your valuable clarification
Is it a new construction? if so Mr.Raja is correct

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details