Ravi Srivastava (86 Points)
03 May 2019
RAJA P M
("Do the Right Thing...!!!")
(128085 Points)
Replied 03 May 2019
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 03 May 2019
Section 17(5)(c)/(d) specifically excludes "Plant & Machinery" for blocked credit purpose. Hence, you can claim an Input tax credit of G.S.T paid on inputs/input services used for construction/Installation/renovation/repairs of P&M provided all conditions stipulated for claiming ITC under Chapter V of CGST rules have complied. Indeed, ITC of G.S.T paid on inputs (goods/services) used for renovation/alteration/repairs of Immovable property shall also be allowed if such expenditure is debited to Profit&loss account. The reason being - as per clause 17(5)(c)/(d), goods or services used for CONSTRUCTION of Immovable property alone are blocked for ITC purposes and the definition of CONSTRUCTION as per Explanation provided means expenditure to the extent of capitalisation in books of account. Hence, expenditure incurred for repairs of PLANT & MACHINERY & IMMOVABLE PROPERTY if not qualified for capitalisation are eligible for availing ITC
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