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Input credit for new branch material purchase

vinayak c. chavan (CPT passed) (1011 Points)

18 May 2018

We are private limited co based in Mumbai. We are constructing one more branch in mumbai region for which we are purchasing material i.e. cement, plywood etc.. can we take GST input credit charged in the material invoices which are going to be used in construction of our new branch. Please clarify the same with reasons.

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4 Replies

CA Ankit R Momaya (Partner at Bhat Momaya & Associates) (2319 Points)
Replied 18 May 2018

GST Input cannot be availed for the above expenses.

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vinayak c. chavan (CPT passed) (1011 Points)
Replied 18 May 2018

Thanks for quick reply. For which type of expenses we can take input credit for our new branch constrction .

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 18 May 2018

cant take itc on the above

input not availed on land and building & material thereof

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CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 18 May 2018

Actually nobody can take credit on whole receipts either as work contract or individual purchases. But there is scope and justification to take credit of loose furniture, cameras, fire or other alarms, ACs (except Centralized AC plant), Computer & networking, temporary office structure inside the building, electrical parts (if not embedded in building) etc used in building.A person can only take credit of item which is used in construction of immovable property but which is not naturally embedded in property. If anything is used in such construction and generally embedded in building then ITC will not be available.