We are manufacturer and have done electrical installation in our office. The expense is capitalized in books of account. Whether ITC would be allowed?

Section 17 of CGST Act 2017

5)……….., input tax credit shall not be available in respect of the following, namely:—

          ……….

(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;

“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 transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract; [Section 2(119) of CGST Act 2017 ]

Input Tax Credit of electrical installation is available if

1.It is not Work contract Service and

2. you have not claimed depreciation under Income Tax Act on the GST component of electrical installation work in your office

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