GST Input Credit: Electrical & Networking Materials for Businesses

GST INPUT CREDIT ON ELECTRICAL FITTINGS & NETWORKING MATERIALS

Manjunath S

Asst. Officer - Indirect Taxes

20 Points Posted on 11 July 2020

Dear Experts,

We are paper manufacturing limited company, and we are constructing a new stores building & office and capitalizing the same.

We are not availing input credit on Building materials like steel, bricks, cements, windows, doors etc

My Query:

Can we avail GST input credit on electrical goods & networking materials like cables, lights, switches, Panel Boards ?

Kindly guide.

Thanks in Advance.

Regards,

Manjunath S

Replies (2)

Quick Summary

This discussion explores whether a paper manufacturing company can claim GST input credit on electrical goods and networking materials like cables, lights, and switches for a new stores and office building. While input credit on general building materials is being forgone, the user seeks clarification on specific electrical components. Experts advise that these items fall under Section 17(5)(d) of the CGST Act, meaning input tax credit is not eligible until the asset is capitalised, and ITC needs to be accumulated first.