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ITC on factory building

manoj k.k (85 Points)

15 October 2018

Can we claim ITC on construction materials used in the building of factory ?

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5 Replies

sanjith kotni (Articled assistant) (663 Points)
Replied 15 October 2018

no we can't claim unless the factory building was mainly constrcted for erection of plant and machinery.As per GST provisions ,input can be claimed only with respect to materials used in works contract resulting in plant and machinery and the plant and machinery is used for producing taxable supply.so here if you use any materials for constructing a factory building it is ineligible.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 15 October 2018

No you cannot take ITC its block u/s 17(5)

Vinod Babu (24191 Points)
Replied 15 October 2018

No, you can't claim ITC.

RAJA P M ("Do the Right Thing...!!!") (127921 Points)
Replied 15 October 2018

@ Manoj K K.,

As per Your query is it's new Construction then You can't claim ITC and it's booked under Fixed Asset. So, ITC not available.

In case it's not constructed and it's "Repairs and Maintenance" work then You can claim ITC and values in PandL account...

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