Input tax credit on work
Query (Issue) Started By: – Ajay Sahi Dated:- 23-7-2018 Last Reply Date:- 1-8-2018 Goods and Services Tax – GST
Got 13 Replies
GST
Sir
\nCan contractors claim input tax on materials purchased for contruction of govt building?
\nReply By Alkesh Jani:
\nThe Reply:
\nSir,
\nAs 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.
\nIn my point of view ITC is not available, whether it is a Govt. Building or other immovable property.
\nThanks
\nReply By KASTURI SETHI:
\nThe Reply<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n le. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e works contract services to the recepient when such services are used for construction of immovable property except plant and machineries.\\ = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Input tax credit on work Query (Issue) Started By: – Ajay Sahi Dated:- 23-7-2018 Last Reply Date:- 1-8-2018 Goods and Services Tax – GSTGot 13 RepliesGSTSir Can 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, … Continue reading “Input tax credit on work”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12749","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12749"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12749\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nReply By KASTURI SETHI:
\nThe Reply:
\n………….. if contractor receives from sub-contractor. No other way out to avail ITC on material.
\nReply By Himansu Sekhar:
\nThe Reply:
\nSir, 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.
\nReply By Alkesh Jani:
\nThe Reply:
\nSir,
\nI 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) o<\/p>\n
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\nSuch exception is not applicable to the Service provider because the materials are used for providing the services. The gross value attracts the GST.
\nReply By Ajay Sahi:
\nThe Reply:
\nThanks 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…
\nReply By MUKUND THAKKAR:
\nThe Reply:
\nITC available in case of WCT is case of immovable property as per definition of works contract.2(119).
\n(iv) Wo<\/p>\n
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