Latest Query & Reply

Can ITC be claimed on construction material used in construction of restaurant? Can ITC be claimed on furniture and plywood used for making furniture for business purpose.

Reply

As per Section 17(5) of CGST Act, 2017, input tax credit shall not be available in respect of goods or services or both received by taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.

Therefore, No ITC of GST shall be allowed on construction material whether in furtherance of business or not.

As ITC is not blocked in case of purchase of furniture for official use, ITC on purchase of furniture is allowed.