LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

GST input on construction of marriage hall

Sumit Kr. Lohani (Industrial Trainee) (55 Points)

24 April 2019

Hi,

Pls. advice; an assessee is having vacant plot and wants to construct a marriage hall on that. He is forming a seperate co. and taking new registration for the same. now would he will eligible for taking inputs of GST paid on material purchase and other costs incurred for construction ???

further business will actually been started after completion of entire construction...

Reply
Follow
Share

9 Replies

Akshay Jain (Tax Consultant) (1024 Points)
Replied 24 April 2019

Some capital goods are not allowed to take input tax credit

Padmanathan Kv (2127 Points)
Replied 25 April 2019

As per 17(5)(d) ITC is blocked on goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.

Darshan Kartik (Manager) (302 Points)
Replied 25 April 2019

No ITC available over construction of building/hall.

Uttam (employee) (814 Points)
Replied 07 September 2019

There is one similar case of Orissa where it was argued that the building was constructed to give for rent.

I think you can similarly argue and avail ITC. however as per act section 17 restricts the credit.

Sandarsh M (28 Points)
Replied 07 September 2019

sir are you referring to Safari retreats Pvt LTD case ?

Uttam (employee) (814 Points)
Replied 07 September 2019

yes... that's the case. Thanks for quoting it I missed. Its a direct take on article 14 of constitution itself.

Sandarsh M (28 Points)
Replied 07 September 2019

So the relief can be taken by the assessee's who hail from same land. can orrissa asseessee's rely on the judgement and take benefit of the provision or should wait for amendment of act.

Uttam (employee) (814 Points)
Replied 07 September 2019

High court will have jurisdiction in that state. In my opinion, the assessee's in that state can rely and take benefit if the case in hand is in similar lines.

However, the same is interpretational issue better to wait for clarity from GST committee and then take action.

NAVIN H GAJRIA (CA Practice ) (2 Points)
Replied 20 February 2022

WE H AVE A MARRGE HALLS ON WHICH ANNUANLLY WE ARE BOUND TO SPENT FOR REPARIS AND RENOVATIONS. THE INCOME EARNED IS DIRECTLY REALTED TO THE EXPENDITURE INCURRED AND THUS WE SHOULD BE ALLOWED INPUT TAX CREDIT ON SUCH.

I SHOULD BE IMMATERIAL IF WE DEBIT REPAIRS OR DEBIT CAPITAL ASSETS ACCOUNT SO FAR AS THE INCOME ND EXPENDITURE ARE RELATED WE SHOULD BE ABLE TO GET THE CLAIM

KINDLY CLARIFY IF ANY ONE HAS COME ACROSS THE SAME