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TMI BlogINPUT TAX CREDIT ON OFFICE INTERIORS WORKSX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, Whether can we take ITC against Interior Work designing Materials, Because, we shifted to our new office for our company. In which we incurred amount for Interior Consultancy, Materials, etc., the same has been capitalized. Kindly Guide me. Thanking You, Raghu - Reply By Himansu Sekhar - The Reply = Please refer to id-113412 - Reply By Rajagopalan Ranganathan - The Reply = ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, Section 17 (c) (d) of CGST Act, 2017 stipulates that- (c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service; (d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or mac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery) on his own account including when such goods or services or both are used in the course or furtherance of business. Explanation . For the purposes of clauses (c) and (d), the expression construction includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property. In my opinion your case is covered by Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 17 (d) of CGST Act, 2017 and hence input tax credit is not available to you. - Reply By Ganeshan Kalyani - The Reply = Credit is not allowed. - Reply By CS SANJAY MALHOTRA - The Reply = I endorse views of Sh Ganeshan ji as construction related activities wherever capitalised is not eligible for credit. - Reply By Alkesh Jani - The Reply = , I request our experts to re-comment, aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er perusing the submission made under:- First let me reproduce the definition of work contract as given in Section 2 of CGST, Act, 2017 ( 119 ) works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract From above it can be said that works contract is limited only to construction of civil structure, once the civil structure is complete by way NOC or any other completion certificate issued by proper authority, services is said to be completed. However, interior designing takes pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce after the construction services is completed and interior designing services constitute mainly designing works, which falls under separate HSN code than of construction service. Only the cost of civil structure and material used for execution of civil structure, may be captalised and ITC of the same cannot be availed, in terms of Section 17(5)(d) . In GST regime, under Section 17 , the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and services which are not eligible for ITC has been specifically mentioned e.g. health care, insurance, outdoor catering etc. non mention of interior designing amounts to eligible for ITC. Further, suppose Table, Chair, Computer etc. are used in the course of business or furtherance of business and as these are essential for staff to run the business and these are shown separately in the Balan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce sheet. So in GST ITC can be availed on such capital goods, subject to condition benefit of depreciation is not availed under Income Tax Act. Our expert may please correct me as this is for my knowledge purpose.Thanks - Reply By YAGAY AND SUN - The Reply = Can anybody imagine working without table chairs and interiors etc in a office. We endorse the very view of Mr. Alkesh Jani read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 17(5) in this regard. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = The views of Shri Alkesh Jani seems to be correct. - Reply By CS SANJAY MALHOTRA - The Reply = Table/ Chairs is altogether different aspect that the query raised in question. ITC is available on same as the same is not part of Negative List. I differ with views of Sh. Aklesh to the remaining part. ITC availab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility / inadmissibility depends on various factors and in depth reading of 17(5)(d) would get you answer. - Reply By YAGAY ANDSUN - The Reply = Interior design do include Tables and chairs. - Reply By CS SANJAY MALHOTRA - The Reply = Interior designing is purely advisory service and does not include any sale of goods. - INPUT TAX CREDIT ON OFFICE INTERIORS WORKS - Query Started By: - Rag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hu K Dated:- 27-4-2018 Goods and Services Tax - GST - Got 10 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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