Question73: We are constructing factory building to manufacture goods to be supplied covered under GST

Whether the input credit on bills of building will be allowable or covered under blocked credit'

Answer ITC of inputs as well as input services are not available if the same are used for construction of factory to be used by you

These credit are available if you are engage in providing of same kind of service For example the main contractor of building can avail credit of the tax paid to the sub contractor or credit of the input used to do construction

but the credit is available if the expanse is relating to repair alteration etc and the same is not capitalized

Note see section 17(5)(c)

SECTION 17 OF CGST ACT

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 machinery) 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; (Reply dt. 20/3/2018)