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ITC on interior work

19 February 2024

hello sir,
pls suggest ITC on interior work done on residential cum office adress then ,can we claim itc on interior bills??

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14 Replies

Money Money (413 Points)
Replied 19 February 2024

According to the GST law, ITC (Input Tax Credit) on interior work done on residential cum office address depends on whether the taxpayer is engaged in supplying works contract service or not. If the taxpayer is supplying works contract service, then ITC is allowed on inward works contract services (being input services) for further supply of works contract service1. However, if the taxpayer is not supplying works contract service, then ITC is not allowed on works contract services or goods or services received for construction of an immovable property (other than plant and machinery) on his own account.

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 19 February 2024

No you can't as same is ineligible u/s 17(5)

Money Money (413 Points)
Replied 19 February 2024

Information about section 17(5) of the CGST Act, which deals with blocked or ineligible input tax credit (ITC) under GST.

According to this section, there are certain goods or services or both on which GST is paid, but the buyer or purchaser cannot claim ITC on them. These are listed in 11 clauses, such as motor vehicles, vessels, aircraft, food and beverages, travel benefits, works contract services, etc12

However, there are some exceptions to these clauses, where ITC is allowed if the goods or services or both are used for specific purposes or businesses. For example, ITC is allowed on motor vehicles if they are used for transportation of passengers, further supply of such vehicles, or providing training on driving such vehicles

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 19 February 2024

Yes, I agreed to above said Replies...

@ Manish Darji,

If You ask questions without details (like Your nature of business) then You can get general reply like based in law...

But, If Yoy give business details then You can get exact replies from Our Experts...

So, As per reply by Rashmi Gandhi & Money Money the ITC can't be claim except as per reply by Money Money...

Manish Darji (35 Points)
Replied 19 February 2024

Nature of business is diamond trading

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 19 February 2024

Well...

Is that Your own building...??

If Yes , and it's to be capitalised then ITC can't be available.

If No, And it's to be accounting to expenditure head then you can avail ITC...

It's my view...

CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 19 February 2024

Clause c of Sec 17(5) specifically disallowed the ITC in respect of building construction. Interior work done for personal or official building hence it is specifically ineligible.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 19 February 2024

Originally posted by : RAJA P M
	Well...Is that Your own building...??If Yes , and it's to be capitalised then ITC can't be available.If No, And it's to be accounting to expenditure head then you can avail ITC...It's my view...