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GST CREDIT FOR INTERIOR WORK

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Aswathi

accountant

56 Points Posted on 22 July 2020

Dear all,

I want to know if GST credit is available for the interior work done in the new office

Interior Work include

1. Partition by Gypsum wall

2. False Ceiling

3. Providing Tables for the work area

4. Electrical work

Please somebody help in understanding if we could avail the GST credit on the interior work considered?

Replies (3)

Quick Summary

This discussion explores the eligibility of GST credit for new office interior work, including partitions, false ceilings, tables, and electricals. Generally, if the costs are capitalised, input tax credit (ITC) is blocked under Section 17(5)(c) of the CGST Act. However, tables can be treated as furniture and ITC claimed on the GST portion. If the interior work is expensed as 'Repairs and Maintenance' in the P&L, ITC is claimable.

Anoop Bansal

student

124 Points Posted on 22 July 2020

In my opinion, if your going to capitalise the entire cost, then you can not avail itc.
If in P&L, you can claim.
For tables you should treat them as Furniture and can avail itc on it even if you are capitalising it(excluding gst)

Aswathi

accountant

56 Points Posted on 22 July 2020

Thanks Anoop @ AnoopBansal

if it is in P&L, under what expense category would you consider it?

Shivam RC

Student

7666 Points Posted on 23 July 2020

If the Interior Work is being Capitalised, then ITC is specifically BLOCKED under Section 17(5) clause (c) of the CGST Act 2017 [ except Tables which you can consider it as a Fixed Asset under Balance Sheet ( Furniture & Fixtures ) and claim ITC on the GST portion ].

But if it is shown in the P&L as "REPAIRS and MAINTENANCE" Expenditure, then you can claim ITC.

Regards,
Shivam RC.