We have a business of making sweets and we make a building for business purposes and we have purchased a material like as Sands bricks block cement etc. business use with GST invoice. E way bill also has been created by supplier. Can we claim ITC? If yes can it be claimed please explain it
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Quick Summary
If you've purchased materials like sand, bricks, and cement for constructing a building for your business, you generally cannot claim Input Tax Credit (ITC) under GST. This is because construction of immovable property is usually considered a blocked credit. The main exception is if your business is specifically involved in construction, or if the materials are for plant and machinery and not capitalised.
No, construction of immovable property other than plant and machinery is under block credit. Credit only allowed to person engaged in construction business. Cannot claim ITC
ITC on construction cannot be claimed unless it is for plant and machinery or is not capitalized i.e. added to the cost of the asset, you can claim depreciation only.