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Itc regarding query

Shahan (accountant) (187 Points)

21 January 2025

Dear Sir/ma'am

Can I claim itc on building materials.

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (6062 Points)
Replied 21 January 2025

As a trader of plants/trees, you can claim Input Tax Credit (ITC) on building materials, but only if they are used for:

1. *Business purposes*: The building materials must be used for constructing or renovating a building or structure for your business, such as a nursery, office, or storage facility.

2. *Furtherance of business*: The building materials must be used to further your business activities, such as creating a greenhouse or a storage area for plants.

Eligible Building Materials You can claim ITC on building materials like: 1. Cement 2. Steel 3. Bricks 4. Sand 5. Electrical fittings 6. Plumbing materials Conditions for Claiming ITC To claim ITC on building materials:

1. *Possess a valid tax invoice*: You must have a valid tax invoice from the supplier, containing the supplier's GSTIN, invoice number, date, and other required details.

2. *The goods must be used for business purposes*: The building materials must be used for your business activities, as mentioned earlier.

3. *File GSTR-3B and GSTR-2A*: You must file your GSTR-3B return and ensure that the supplier has filed their GSTR-1 return, which will reflect in your GSTR-2A.

Important Considerations 1. *ITC reversal*: If you use the building materials for personal purposes or sell the building, you may need to reverse the ITC claimed.

2. *GST rates*: Ensure you're aware of the GST rates applicable to the building materials you're purchasing. Consult a tax professional to ensure you're meeting all the conditions and complying with GST regulations.

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