ITC on Construction of WAREHOUSE

Not Allowed for Construction of Immovable Property.  Specifically mention in the ACT. Building cannot be treated as plant and machinery. 

ITC will be available. Dear Rahul, you are right, ITC on constrution of Building is now allowed under section 17(5)(d) of CGST Act. But in the above query, constrution of Warehouse for renting purpose. Plant includes building or structureconstituted as apparatus/tool of the taxpayers by means of which business is carried on. But if the building/structure merely constitued a place where the business activity is carried on, can not be regarded as plant [ In CIT V. Dr. B Venkata Rao (2000) 111 taxman 629=247 ITR 268=2001 AIR SCW 2343 (SC 3 Member Bench)

For the purposes of this Chapter and Chapter VI, the expression “plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes—

(i) land, building or any other civil structures;

(ii) telecommunication towers; and

(iii) pipelines laid outside the factory premises.

Thus it will not amount to construction of Plant & Machinery and hence no ITC is available.