ITC on shed fabrication

Hy all

We are making shed in our factory at 1st floor and we purchase some material for it.

my question is this, can we get input on raw material?

Replies (5)
Quick Summary
This discussion explores the eligibility for Input Tax Credit (ITC) on raw materials used in shed fabrication. The key consideration is whether the expenditure is treated as capital or revenue. While ITC is generally unavailable if materials are capitalised into building accounts, it may be claimable if treated as a revenue expense. However, expanding factory space is typically considered capital expenditure, impacting ITC claims.

If you hired a contractor, one can claim ITC.

 

https://cleartax.in/s/gst-cases-where-input-tax-credit-is-unavailable

Further, itc can be claimed on raw materials if you meet this criteria

https://irisgst.com/all-about-input-tax-credit-itc-how-to-claim-input-tax-credit/

In term of Section 17(5) if it is capitalised to building account then ITC is not available , but if book under revenue expenditure then ITC is available.
We just expand our area of factory from ground floor to first floor, definitely it will help us to increase our revenue ..
can we assume it revenue expenditure and claim ITC ??

That is capital expenditure because you will be capitalising it into PPE. One can’t do things out of AS. 

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