Itc on cement

This query is : Resolved

monika (Querist)
Follow

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
????????

JAGANATHAN R ACMA, SAP(Fi-Co)

JAGANATHAN R ACMA, SAP(Fi-Co) (Expert)
Follow

20 June 2018 No ., purely related to mgf, plant machinery we can avail., and building and all cannot take provide

Message likes : 2 times

NITIN SAKPAL

NITIN SAKPAL (Expert)
Follow

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.

Message likes : 1 times

monika

monika (Querist)
Follow

20 June 2018 SIR
ASK ABOUT CONSTRUCTION OF IMMOVABLE STRUCTURE NOT FOR OWN USE
IT HAVE BUILD FOR OTHER THROUGH A CONTRACT

WHAT WILL BE IN THIS CASE
OF ITC ?

RAJA P M

RAJA P M (Expert)
Follow

20 June 2018 You can avail the ITC if You are a Work Contractor...

RAJA P M

RAJA P M (Expert)
Follow

20 June 2018 @ Mr. JAGANATHAN R and NITIN SAKPAL.,

Why the ITC not available...?
Can You explain the view...!!!

monika

monika (Querist)
Follow

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

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
Follow

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.

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