Land Development charges-eligible for ITC?
Query (Issue) Started By: – BHAVESH JHALAWADIA Dated:- 15-7-2018 Last Reply Date:- 17-7-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Land occupied by company. Company is going to construct factory over the land. Factory is for chemical business. In order to construct the factory over the land, first land is to be properly developed Contract is given for development of land. Contractor issues bill of works contract for development work over the land. Whether ITC is available or not?.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
According to Section 17 (5) (c) of CGST Act, 2017 " works contract services when supplied for construction of an immovable property (other t
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
except plant and machinery. ITC is admissible from both aspects:-
(i) Credit is denied only on other than plant and machinery. ITC is admissible on construction of plant and installation of machinery.
(ii) Land development is an input service for same service i.e. Works Contract Service. Land development is very much basis of providing Works Contract Service.
What is the legal definition of a 'plant' ? What is classification of 'land development' ?" These have to be taken care of.
Remote possibility of litigation cannot be ruled out due to jugglery of words used in the exclusion clause.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
In view of the opinions of the experts it is better to get an advance rulin
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =