Input Credit on construction at Immovable property for renting purpose

268 views 3 replies
Can I avail input credit if the there is additional construction of building in the same premise which is not being used by business but the sole purpose of additional construction is for renting only and rent lease is prepared before construction.

Eg:

Primary business of ABC is if manufacturing and export of textile.

ABC holds a land and building which is never used for it's business purpose , ABC receives offer from XYZ that if ABC constructs additional building in the same premise than XYZ will use it for his logistic use for a period of 2 yrs.

ABC and XYZ agrees and enters into a leasing contract.

Later, ABC appoints BCG for works contract for constructing additional building.

In above senario can ABC avail input credit on the construction Invoices of BCG.
Replies (3)

NO.

Its blocked credit.

You can capitalize.

Yes agree with Sh. Dhirajlal Rambhia it's block Under 17(5) of CGST Act
no the credit is blocked under sec 17(5)

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
ARTICLESHIP 08 July 2026
Articles

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details