ITC on construction of Temporary Labour sheds in projects.

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boopathi (Querist)
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05 December 2019 We are the civil engineering construction company doing construction of hospital buildings, railway etc. In our projects, we are laying Temporary Sheds for the purpose of staying our company labours and staffs within our project. Later, after completion of project, these temporary sheds will be dismantled and taken back of some goods which is re-usable like doors, windows, steel structures etc. for re-use for our other projects. We are booking this sheds in our accounts under Fixed Assets and claiming depreciation.
My question is, whether can we claim Input Tax Credit (GST) from materials purchased for construction of these temporary sheds?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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05 December 2019 As the restriction applies only to immovable property, If any structures if it can be dismantled and can be moved without any substantial damage, you can take credit as they not immovable properties.

IMO , No problem with Capitalization in the books of account.

Better take legal opinion.