Hello,
I am constructing a building on a rented property for hotel purposes. Can I claim the ITC on the construction expenses. The building is being build purely for business purposes.
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8573 Points)
Replied 18 June 2025
*Verify GST Registration*: Ensure the supplier of construction services is GST-registered. -
*Maintain Documentation*: Keep proper records of construction expenses and GST payments. -
Molly 's
(4 Points)
Replied 18 June 2025
Would the section Section 17 (5) (d) of the CGST Act prohibits ITC claims on construction materials used in construction of immovable property except for plant and machinery not be applicable in this case?
Simeon Gutmann
(Gutmann)
(22 Points)
Replied 19 June 2025
Originally posted by : Molly 's | ||
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Would the section Section 17 (5) (d) of the CGST Act prohibits ITC claims on construction materials used in construction of immovable property except for plant and machinery not be applicable in this case ? Poor Bunny | ![]() |
Yes, construction materials such as cement, steel, bricks… and real estate construction services (except plant/machinery) are not eligible for ITC deduction if used for construction of real estate for the investor himself, whether for business or not.
Bradley Earnest
(6 Points)
Replied 24 June 2025
Yes, you can claim ITC on construction expenses only if the expenses are not capitalized. If the construction cost is capitalized as immovable property, ITC is blocked under Section 17(5)(d) of the CGST Act. Check how your accounting treatment is slope game.
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