ITC ON FACTORY BUILDING INSURANCE

Hi,

Can we take ITC on factory building insurance.. if yes then please provide proper reference of section/ case law/Advance rulings etc.
Replies (2)
Quick Summary
The discussion examines whether ITC can be claimed on factory building insurance under GST. One view denies ITC on the ground that buildings are not inputs, while another argues that insurance is a revenue expense and not covered by the ITC restrictions under Section 17(5)(d) relating to construction of immovable property.

GST Act defines inputs as goods or services used or intended to be used by a supplier in the course or furtherance of business. Factory buildings are not considered as inputs and therefore, ITC is not allowed on the insurance of factory buildings.

Hi Aisha thanks for your suggestion.

But 

As per Clause (D) of Section 17(5) of CGST Act, 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: the expression "construction" includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property.

In My opinion Building insurance is not a capital expenditure so that giving effect of above said section we can take ITC. 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details