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. 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details