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ITC claimable in this case?

ITC / Input 213 views 1 replies

Arunachalam

Proprietor

191 Points Posted on 29 October 2018

Hi all:

A registered person, who has textile business in Chennai, would like to construct a new textile showroom a few kms away from Chennai. The land where he likes to construct is registered under his name as well. The question is whether he can claim ITC for the construction materials to be purchased. Is he eligible to purchase materials using his existing GSTIN and ask the supplier to make shipment to the place where the construction is to begin?

Also, is it mandatory to bring the new location under the additional place of business of existing GSTIN, before purchasing construction materials?

Please advise.

Thanks,
Arunachalam

Replies (1)

RAJA P M

"Do the Right Thing...!!!"

128152 Points Posted on 29 October 2018

ITC not available based on Sec 17(5) of CGST Act

(d) 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: For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property;