Question77: We have purchased in our factory ready-made cabins for security, beds and ready-made partitions, internal toilets and internal bathrooms falling under HS Code 9406 and installed them.

Can we avail ITC of the GST paid on these items'


Answer Section 17(5) (d) blocked credit on goods or services or both received by taxable person for construction of an immovable property on his own account including when such goods or services or both are used in the course or furtherance of business.
Explanation of this section also specifies that "For the purposes of clauses (c) and (d), the expression 'construction' includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property;
In accordance of above provision when goods or services are purchased and used for construction of immovable property is ineligible for credit and their is no restriction on credit on prefabricated buildings like ready-made cabins for security, beds and ready-made partitions, internal toilets and internal bathrooms when installed in building after construction of building .
Thus you are eligible for credit on the same but one important point you should keep in your mind that the cost of the same should not be capitalized in the cost of building and second important point is that this prefabricated items are move able and are not becoming part of the building even after installation
In fact this opinion should be finalised only on case to case basis after going through the sample of the product please do't form any general opinion (Reply dt. 28/3/2018)