GST SECTION 17(5)

This query is : Resolved

S. RAVICHANDRAN (Querist)
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13 December 2024 One of our client engaged civil construction activites of plant, he received notice for input tax availed for Cement, Iron and Paint items u/s 17(5) ineligible ITC. The major inputs for construction activities is Cement, Iron and Paint. Kindly give any notiification/circulars to reply.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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13 December 2024 You have not specified whether you are a works contractor or not, if yes ITC is available. Otherwise it is blocked under section 17(5) to the extent it is capitalised in the books. However you may also refer to recent SC judgement in the case of safari retreats, according to which if your building constitutes plant you may be eligible for ITC.

S. RAVICHANDRAN

S. RAVICHANDRAN (Querist)
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13 December 2024 Works Contractor. Charged GST @ 18% on taxable value in the invoices to the customers.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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16 December 2024 If you are a works contractor and undertook construction activities for their clients, then ITC is available.

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