20 June 2018
CAN I AVAIL ITC OF CEMENT AND SARIA AND OTHER RAW MATERIAL PURCHSE BILL, THAT I PURCHASE FOR WORK CONTRACT OF BUILD AN IMMOVABLE STRUCTER LIKE BRIDGE , BUILDING ????????
20 June 2018
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-
XYZ Industries constructs an office building for its headquarters. ITC will not be available. XYZ Industries also constructs a blast furnace to manufacture steel. ITC is available since it is a plant.
20 June 2018
read this article https://cleartax.in/s/gst-cases-where-input-tax-credit-is-unavailable
Works contract ITC shall not be available for any work contract services. ITC for the construction of an immovable property cannot be availed, except where the input service is used for further work contract services.
For example, XYZ Contractors are constructing an immovable property. They cannot claim any ITC on the works contract. However, XYZ hires ABC Contractors for a portion of the works contract. XYZ can claim ITC on the GST charged by ABC Contractors
21 June 2018
If you are a contractor supplying works contract services then ITC of cement and other building materials is available as per Section 16 read with Section 17 of the CGST Act.
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