Goods and Services Tax – Started By: – Ajay Sahi – Dated:- 23-7-2018 Last Replied Date:- 1-8-2018 – SirCan contractors claim input tax on materials purchased for contruction of govt building? – Reply By Alkesh Jani – The Reply = Sir, As per section 17(5) (c) of the CGST Act, 2017, input tax credit shall not be available in respect of the 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. In my point of view ITC is not available, whether it is a Govt. Building or other immovable property. Thanks – Reply By KASTURI SETHI – The Reply = ITC is not available. – Reply By DR.MARIAPPAN GOVINDARAJAN – The R
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actor receives from sub-contractor. No other way out to avail ITC on material. – Reply By Himansu Sekhar – The Reply = Sir, kindly go through the minutes of 20th gst council meeting. Credit on materials is clarified there. In my view, there is no ground for denying the credit. Sec 17 has not put any bar also. – Reply By Alkesh Jani – The Reply = Sir, I am thankful to our experts for expressing their valuable views. In this regards, I wish to add that here as per the query raised, the querist seems to be main contractor, further, the opening lines of Section 17 (5) clearly mentions input tax credit shall not be available the definition of Input tax is given at Section 2 (62) of CGST Act, 2017, which implies of goods and services and closing
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ed for construction of immovable property except plant and machineries.\ Such exception is not applicable to the Service provider because the materials are used for providing the services. The gross value attracts the GST. – Reply By Ajay Sahi – The Reply = Thanks to all for valuable input. Still as a contractor supplying the works contract service for contruction of govt building even if its immovable, ITC on purchases of materials to be utilized for the contruction can be availed as its for the furtherance of the business… – Reply By MUKUND THAKKAR – The Reply = ITC available in case of WCT is case of immovable property as per definition of works contract.2(119). (iv) Works contract services when supplied for construction of immovable p
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