Eligible for ITC

ITC / Input 385 views 4 replies
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802 Points Joined July 2017
Can I take ITC if we construct a factory & plant a machinery?
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On 18 December 2018 at 13:55 Report
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1020 Points Joined December 2017
NO ITC is available for goods / services for construction of an immovable property on his own account .
BUT this rule doesn't apply to the construction of plant and machinery .ITC is available for those goods / services used in construction of plant and machinery for his own account.
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On 18 December 2018 at 14:25
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Chartered Accountant
39039 Points Joined September 2008

ITC on construction of factory/ P&M. This needs to be broken up into the following: 

1. Construction related to plant and Machinery ( Including the foundation, structures ) where steel and cement is used. Eligible

2. Construction of building - Not available.

3. P&M which may result in immovable property. Eligible.

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On 18 December 2018 at 16:29
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GST Practitioner
55067 Points Joined June 2017
Any expense towards Building if capitlised , ITC is block . yes you can avail credit on expense against Machinery ( Refer section 17(5))
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On 18 December 2018 at 16:32
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CA Final student
7106 Points Joined April 2018
Itc cannot be availed on construction of building as per sec17(5).
but in case of plant and machinery you can claim itc
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On 18 December 2018 at 23:30


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