Question ID : 40531

ITC FOR IMMOVABLE PROPERTY

WHEN THE ASSESSEE HAD MADE ROUTINE REPAIRS AND MAINTENANCE WORK (CONSTRUCTION) ON EXISTING IMMOVABLE PROPERTY. AND THE WHOLE EXPENSE IS DEBITED IN PROFIT AND LOSS ACCOUNT. MEANS NOT CAPITALISED ANY AMOUNT. CAN THE ASSESSEE TAKE ITC FOR GST PAID ON SUCH EXPENSES. THANK YOU.

Answer ID : 80331

As per section 17 (5) (d) of CGST Act, goods or services or both received by a taxable person for construction of an immovable property (other than plant and machinery) on his own account, including when such goods or services or both are used in the course or furtherance of business shall not be allowed to the extent of capitalization, if the expenses have been debited to profit and loss account then the ITC on such expenses allowed. please refer the explanation to section 17(5)(d). Explanation :- For the purpose of clause (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property.

Answer ID : 80338

NO the ITC on repair and maintenance is not available . if the same is not used for sale in the furtherance of the business

---