Construction of factory - gst on inputs

amit (Accountant) (96 Points)

03 January 2018

As per GST Law:- "ITC is available on inputs used to manufacture plant and machinery for own use."

Query:-

An Individual is constructing a factory for Industrial Production - can he avail ITC on inputs - like Cement, etc ?

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3 Replies

(Guest)

No. Allowed for construction of plant and machinery only.

CA Hemant Shukla (Practice) (79 Points)
Replied 03 January 2018

No Input tax credit

amit (Accountant) (96 Points)
Replied 04 January 2018

Thanks. But please see below example given at "clear tax website",

Ajay Steel Industries constructs an office building for its headquarters. ITC will not be available.
Ajay Steel Industries also constructs a blast furnace to manufacture steel. ITC is available since it is a plant.

So, how to differentiate between "Plant" & "Factory"

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