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Construction of Godown/ Warehouse

Juned Ahmad (Accountant) (111 Points)

09 August 2019

Can I avail GST credit for Material Purchase Construction of Godown/ Warehouse for Business Purpose

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9 Replies

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 09 August 2019

As per Section 17(5) No... you cannot if it's capitalised to Building account .

Note : If it is book as revenue expenditure , then you can avail ITC

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mohit ganatra (53 Points)
Replied 09 August 2019

u cannot book this as revenue expenditure...u have to compulsarily capitalized to building account....

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 10 August 2019

Yes can book as revenue expenditure when godown is on rent

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mohit ganatra (53 Points)
Replied 10 August 2019

u have to conpulsarily capitalise to building account.. it is an ineligible ITC as per sec 17(5)

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 11 August 2019

How can you capitalised such expenses to building account when the building is not own by You, (It's rented)

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Shivam RC (Student) (23683 Points)
Replied 11 August 2019

No you cannot claim ITC as it is specifically BLOCKED u/s 17(5) of the CGST Act 2017

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subhagan sreerangam (7040 Points)
Replied 11 August 2019

good clarification and information

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Shivam RC (Student) (23683 Points)
Replied 11 August 2019

Respected Subhagan Sreerangam Sir,

It has been noticed for a couple of weeks that you are constantly posting the comment "GOOD CLARIFICATION AND INFORMATION " , for increasing your points. Kindly answer the question asked by the querist without just writing "good clarification and information"..

Please abide the rules and regulations of this group. All the members, employees, executives of caclubindia are trying their level best to make this app as the Best Professional Application.

I have no intention to hurt you Sir..

Thank You.

Warm Regards.