ITC on factory building
manoj k.k (85 Points)
15 October 2018
Can we claim ITC on construction materials used in the building of factory ?
5 Replies
sanjith kotni
(Articled assistant)
(663 Points)
Replied 15 October 2018
no we can't claim unless the factory building was mainly constrcted for erection of plant and machinery.As per GST provisions ,input can be claimed only with respect to materials used in works contract resulting in plant and machinery and the plant and machinery is used for producing taxable supply.so here if you use any materials for constructing a factory building it is ineligible.
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 15 October 2018
No you cannot take ITC its block u/s 17(5)
RAJA P M
("Do the Right Thing...!!!")
(128106 Points)
Replied 15 October 2018
@ Manoj K K.,
As per Your query is it's new Construction then You can't claim ITC and it's booked under Fixed Asset. So, ITC not available.
In case it's not constructed and it's "Repairs and Maintenance" work then You can claim ITC and values in PandL account...
As per Your query is it's new Construction then You can't claim ITC and it's booked under Fixed Asset. So, ITC not available.
In case it's not constructed and it's "Repairs and Maintenance" work then You can claim ITC and values in PandL account...
Pankaj Rawat
(GST Practitioner)
(55057 Points)
Replied 16 October 2018
Yes Mr. Raja Ji is correct if its capitalised to Building Account you cannot claim ITC
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