The Input Tax Credit or ITC, refers to the Goods and Services tax or GST, that a taxable person pays on any purchase of goods and/or services that are or will be used for business purposes. When we were constructing a house, we tried to know is ITC on construction of immovable property applicable or not. We, therefore, talked with an expert and learned that it is not available. No ITC is available for goods or services for the construction of an immovable property on his or her own account. In short, the answer to the question "Is ITC available on construction of immovable buildings?" is no.
What are the cases where input tax credit under GST cannot be availed of?There are specific cases mentioned by the GST law where no ITC shall be made available for claims apart from the construction of immovable property by the taxpayer. I learned this from a newspaper this February, so you can rely on me. Here are some cases where ITC is not available-
Motor vehicles and conveyances
Supply of certain goods, services or both like- food and beverages, outdoor catering, beauty treatment, health services and more
Services if general insurance, servicing repair and maintenance
Sale of membership in a club, health or fitness centre
Travels or benefits that an employee avails such as leave or home travel concession
work contract services
On goods or services received by an NRI
On goods or services used for personal purposes that are not business related
On stolen, destroyed, written off or more goods
So ITC on construction of immovable property is not applicable along with these cases.
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Tanay
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2023-05-25T09:40:34+00:00 2023-05-25T10:33:07+00:00Comment
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