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Repairs of building exp and itc not available

Sandeep Sharma (Accounts executive) (552 Points)

30 March 2022

I received a bill for construction or repair of building. What will be the journal entry in case itc not available?

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prasad Nilugal ( GST Practitioner & Accounts ) (14868 Points)
Replied 30 March 2022

As per section 17(5) of the CGST act Input tax credit of repair expenses on construction are Ineligible or Block credit .

pass entry as follows .

Repair and maintenance A/c Dr
CGST A/c Dr
SGST A/c Dr
To Trade Creditors A/c Cr
( Repair and maintenance expenses for Construction of Building )

You have to pass entry as above , however because of credit not available show CGST and SGST in Table 4 ( D ) (1) of GSTR3B Ineligible ITC . ( credit not available)
Also mark in Books of accounts as Ineligible ITC , you have to show CGST and SGST in the entry because , same has been charged in Invoice .

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