ITC claim on Construction material purchase??

Section 17(5)(d) restrict ITC 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.

Explanation 2 to section 17(5) the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property;

So, if you capitalised this expense to Your Property(Fixed Assets) in. books than not allowed. If you expensed out this Expenses as Repair and maintenance in books, than its allowed.

Some more clarity is required on this. we are in service industry, and we are constructing a office building ok, we are using materials in it like wires,fabrication,electric materials etc, so can we use GST paid on this items purchased. 2. Can we claim gst paid on labour contract bill.

Pratik, consider it this way.
If you've two contracts, one of Immovable assets and other of movable assets, you'll be able to claim ITC of movable assets.
Since in your above question it involves electrical installations, if you could prove that they are not part of the immovable asset and can be separated from it, I'd suggest you to make a separate contract of the same and claim ITC.
As regards labour Bill on the same construction, I'm afraid it cannot be claimed since it'll be part of Immovable asset and will be capitalised.

Can refer Safari Resorts - Orissa High Court case, although this is presently pending in the Supreme Court. ITC is highly disputable in nature, and as Mr. Kaushik has pointed out burden of proof lies with assessee to prove eligibility of ITC. As value seems less it may not be for capitalisation therefore, ITC can be said to be eligible.