INPUT CREDIT ON REPAIRS
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 26-2-2019 Last Reply Date:- 3-3-2019 Goods and Services Tax – GST
Got 7 Replies
GST
We have done repair work like painting ,Wall repairs, putting tiles, etc. in our factory gala and amount debited to repairs & Maintainnace.
Can we avail Input Credit for such transaction.
Reply By Ganeshan Kalyani:
The Reply:
in my considered view, input tax credit is eligible.
Reply By Alkesh Jani:
The Reply:
Sir,
If the said repairs is with regards to factory (civil structure) it falls within the ambit of Section 17(5)(d) of CGST Act,2017 and explanation given may also be taken into consideration. However, as the factory (civil structure) has been booked as
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1. If capitalised to such immovable property – ITC is ineligible under section 17(5)(c)/(d) of CGST Act,2017.
2. If not capitalised to such immovable property – ITC is eligible.
Reply By Ganeshan Kalyani:
The Reply:
Sri Alkesh Ji, the repair to the capitalised asset not necessarily capitalised . If the benefit out of the repair is not spread over the year then it is becomes a revenue expenditure. In such cases credit is eligible as specifically provided in section 17 (5) of the CGST Act. Thanks.
Reply By Ganeshan Kalyani:
The Reply:
As reagard capitalisation of an asset INDAS need to referred.
Reply By KASTURI SETHI:
The Reply:
How this decision is in favour of the assessee ? That is to be analysed.
2018 (17) G.S.T.L. 690 (A
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