Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Construction Business - Works Contract

A.Kishore Kesav (807 Points)

01 May 2023

Mr.S is doing construction business. Explain in brief the ITC Availability of products under Works Contract. TIA.

Reply
Follow
Share

3 Replies

CA Rakesh Ishi (Working at Private Company) (7995 Points)
Replied 01 May 2023

If the contract is for an Immovable Property, then the ITC is not available for goods and services used in the construction of such property. However, if the Works Contract is for a Movable Property, ITC is available on goods and services used in the Works Contract.

1 Like

Pankaj Rawat (GST Practitioner) (55037 Points)
Replied 01 May 2023

In term of Section 17(5) (c) of CGST Act ITC is not available in respect of work contract services when supplied for construction of an Immovable property (other than plant & machinery) Except WHERE IT IS INPUT SERVICES FOR FURTHER SUPPLY OF WORK CONTRACT SERVICES.

So if it is provided to End consumer ITC is not available to End consumer But if it is provided to contractors (same line business) ITC available to contractor.

M Sajeesh (33 Points)
Replied 17 September 2023

Sir,
Gst works contract registered The party supply of crusher another registered partly.
Rs. 35000 buy and sell₹ 43000.
Rs. 35000(includes gst 5%)
Rs. 45000(includes profit& transportation charges)

How gst return calculated? and gst tax rate 5% or 18%?