In construction of unit in a factory electrical fitting is there and vendor gave GST bill . Can company can take ITC on electrical fitting?
Raw materials immovable property means cement sand bricks. Immovable property means only for inputs used for building construction.
Electrical fitting nowhere required for building construction kada Also both building construction vendor and electrical fitting vendor different.
If you read section 17 of CGST Act, which speaks about input credit apportionment and dis allowance.
Refer to subsections which read as:
(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 capitalization, to the said immovable property;
So, it is evident that input is not to be allowed for any cost incurred in construction of immovable property.
Further without electrical wiring how a building can be completed. Even leasehold improvements which include electrical fittings is not allowed as it is improvement for building.
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