Case Law Details
In re J.K.Fenner (India) Limited (GST AAR Tamilnadu)
Introduction: The Goods and Services Tax (GST) has a plethora of provisions governing the Input Tax Credit (ITC). One intriguing area is the ITC claim on works contracts related to factory building repairs. The case of J.K. Fenner (India) Limited under GST AAR Tamilnadu delves deep into this topic.
Understanding the Applicant’s Position: J.K. Fenner (India) Limited, a manufacturer of multiple products like Transmission Rubber Belts and Oil Seals, frequently incurs expenditure on repairs and maintenance of factory buildings. These expenses are crucial for their business continuity and seamless production. They needed clarity on the ITC claim related to such repair expenses under GST.
Key Aspects of the Issue
1. Nature of the Expense: The core question was whether the GST paid on the works contract for repair of the factory building would be available for ITC if such expenses weren’t capitalized and treated as revenue in nature.
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