Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

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?

Reply
Follow
Share

3 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14916 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 .

1 Like

Sandeep Sharma (Accounts executive) (552 Points)
Replied 30 March 2022

Sir, if itc not available, Can we capitalize the exp incurred on building

prasad Nilugal ( GST Practitioner & Accounts ) (14916 Points)
Replied 30 March 2022

Have you repaired old Building ?.

CCI Pro

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

CCI Pro

Meet our PRO Members

atul kumar soni

PRO MEMBER

Deepak Soni

PRO MEMBER

SACHIN SOHANI

PRO MEMBER

Rajesh Subhash Chitnis

PRO MEMBER

jagadheswar goud

PRO MEMBER

Subscribe to CAclubIndia Pro

Trending Online Classes

GST Demands and Recoveries: Navigating Through the Tides

CA Nipun Arora

Enroll Now

17 July 2025
Fake ITC & Penalties under GST Act - Patanjali Ayurveda Case

CA Shruti Singhal

Enroll Now

25 July 2025
Certification Course on GSTR-3B Reconciliation with GSTR-2B through AI Tools

CA Deepak Gupta

Enroll Now

15 July 2025

view all classess

Follow us

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads

Recent Posts

Unreplied Threads

Settings