Question ID :
37994
GST Input Tax Credit
A Business entity spends on interior including false ceiling and the service provider charges GST on works contract. The building is owned by the business entity. Is it eligible to take input credit of GST paid or interior including false ceiling.
Will situation be different if the building is rented premises?
Posted by
Ethirajan
on
Feb 22, 2019
Filed Under
GST
Credit of GST paid on goods or services for construction of immovable property is NOT allowed as it is blocked under s.17(5)(d). Whether own building or rented building, credit of GST paid interior works (as a works contract under GST), will NOT be allowed.
Posted by
CA. JATIN CHRISTOPHER A on
Feb 22, 2019
Answer ID :
76319
Any GST paid on Goods/Services/Works contract in connection to Construction of Immovable property is not allowed as ITC,
However, GST paid on any repairs/alterations which are not capitalized in the said immovable property, ITC for the same is allowed as clarified in Explanation to 17(5) (c) and (d) which clearly says -
“construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property;
Posted by
Ashish Kumar Goyal on
Feb 28, 2019
Answer ID :
76397
In both the case , ITC is not eligible. See Section 17(5)(c) & (d)
Posted by
Mohit Singhal on
Mar 21, 2019