Input tax credit of gst charged on works contract

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CA Praveen Chopra

CA Praveen Chopra (Querist)
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08 July 2017 Whether ITC is available in respect of GST charged on Works Contract relating to Construction Work.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2017 ITC is available in respect of GST charged on Works Contract relating to Construction Work to builders selling the property under construction.
ITC Not available for users of the property.

CA Praveen Chopra

CA Praveen Chopra (Querist)
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08 July 2017 But as per clause (c) of sub section 5 of section 17 of the CGST Act, it is allowable only when it is an input service for further supply of works contract service. No where it is mentioned that it is allowable to builders selling the property under construction. Can you please clarify the same ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2017 See the GST tariff schedule for services ITC claim is allowed for them.
19.Construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly.
[The value of land is included in the amount charged from the service recipient]
12% With Full ITC but no refund of overflow of ITC

CA Praveen Chopra

CA Praveen Chopra (Querist)
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08 July 2017 As per tariff schedule for service, ITC is allowed to such builders but for what types of services ? Whether related to all types of input services or of works contracts services ?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 July 2017 ITC allowed on all types of input services of works contracts services and materials used.
No restriction.

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