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Input tax credit on factory shed material

ITC / Input 3013 views 4 replies

stapler

bus

307 Points Joined December 2007

Can a manufacturer take input tax credit of material like GC sheets, colour coated GP sheets, Angles, channels, pipes, paints etc. to be used in -

1. Repair of existing factory shed.

2. Construction of new factory shed.

If this is inadmissible, then does he need to first take the credit & then reverse in GSTR 3B?

Please guide.

Thanks in advance.

Replies (4)

Ritesh Asare

Practice

322 Points Joined January 2018

No. Its blocked credit.

You should capitallize GST along with the expenditure, and can claim depreciation.

No question of reversal of ITC afterwards.

Padmanathan Kv

2127 Points Joined October 2017

if you are treating repair as revenue expenditure you can claim ITC

ITC on Construction is blocked credit. Better to take the credit and reverse it in 3B

@ Padmanathan Sir, Replacing damaged GC sheets in an existing shed in factory is "Building Repairs" expense. That means it's correct to take the ITC in this case without the need to reverse it subsequently in 3B. Sir can you please cite relevant rule/notification, if any in support. Thanks for the guidance.