Can ITC be availed on office furnishings & interior works ?

 

 

As per Section 17(5(c) blocks ITC only in respect of works contract services when supplied for construction of an immovable property.

 As per section 2(119) , 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;                                                                                                        Immovable property is defined in Section 3(26) of the General Clauses Act, 1897 as under:                                      Immovable Property shall include land, benefits to arise out of land and things attached to earth, or permanently fastened to anything attached to the earth.

 Furniture and interior items involving no further fixing for example, Sofa, Table, Chairs, Door, Cabinets, etc do not fall under the ambit of section 17(5)(c) and thus ITC can be availed subject to satisfaction of other conditions.

The furniture and fixtures are not immovable property in most cases but can be when used as a floor or fixed for a structure. In the scenario where, the furniture and fixtures are fixed or immobilized or considered as a part of construction activity of immovable nature then the input tax credit will not be available to the extent of capitalization of such goods and services as per provisions mentioned in Section 17 of CGST/RGST Act, 2017.

 The applicant can avail ITC of GST paid on purchase of new ready to use furniture such as chairs, etc as per provisions mentioned in Section 16 of the CGST/RGST Act, 2017.

From,

Krishnakant Jakhotia,

Mobile No:- 9422507911

Email Id :- cassrpn@gmail.com