Gst -two wheeler finance,works contract -applicability???

Save Share

This query is : Open

Vishnu (Querist)

11 December 2017 Hi
Please clarify whether GST is applicable if a person is involved in TWO Wheeler Finance business???? He does only finance ..he doesnot buy and sell vehicles. So is GST applicable on Interested collected on finance amount etc???
Can a works contractor claim Input on cement,steel i.e on inputs used for completion of contract???

A business person has made construction of wall for his business premises can he claim input for the materials (cement and steel) used???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 December 2017 1 GST not applicable on two wheeler finance.
2 works contractor can claim ITC on steel and cement used.
3 Business person can't claim ITC on wall construction.

Message likes : 2 times

Vishnu

Vishnu (Querist)

11 December 2017 Sir
Thank you. As the wall is a capital asset and the premises is own, why cannot he claim it???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 December 2017 You are right that was the rule required modification.

Message likes : 1 times

RAJA P M

RAJA P M (Expert)

11 December 2017 7. Constructing an immovable property on own account No ITC is available for goods/services for construction of an immovable property on his own account. Even if such goods/services are used in the course or furtherance of business, ITC will not be available. But this rule does not apply to plant or machinery. ITC is available on inputs used to manufacture plant and machinery for own use. Example- Ajay Steel Industries constructs an office building for its headquarters. ITC will not be available. Ajay Steel Industries also constructs a blast furnace to manufacture steel. ITC is available since it is a plant.

Message likes : 2 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now