Immovable Construction ITC

ITC / Input 166 views 1 replies
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108 Points Joined June 2020

Dear Sir,

I am a wholesale medicine businessman and my firm is registered in GST. I am getting my new office constructed for business purpose. So can I get an input credit of GST on the purchase or expenses on construction.

Best Regards 

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On 24 June 2025 at 18:16 Report
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Master in Accounts & high court Advocate
9434 Points Joined December 2011

As a wholesale medicine businessman with a GST-registered firm, you might be eligible to claim input tax credit (ITC) on certain expenses related to your business.

However, the rules regarding ITC on construction expenses can be complex.

 *ITC on Construction Expenses:* Generally, ITC is available on goods and services used for business purposes.

 However, specific rules apply to construction services and goods used for construction : -

*Blocked Credits*: ITC is not available on construction services or goods used for construction of buildings or civil structures, if the recipient is not the owner of the premises (e.g., rented or leased premises). -

 *Exceptions*: If you're the owner of the premises or have a long-term lease (typically 20-30 years or more), you might be eligible for ITC on construction services and goods. *GST on Construction Services:

* If you're getting your office constructed, the construction services would attract GST.

You might be eligible for ITC on the GST charged on these services, subject to the above-mentioned rules and conditions. 

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On 24 June 2025 at 19:17


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