CCI Online Learning
What do you want to learn today?

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Availability of input credit for builders in work contract

Sunil (CA)     16 June 2017

 15 likes  185 points

| My Other Post

A builder / developer is employing various contractors for construction of immovable properties (falt/villa). As per section 17(5)  of CGST Act, input credit is not available on works contract service when supplied for construction of an immovable property, except where it is an input service for further supply of works contract service.

Can the services on Construction of building, complex etc can be avail input credit on Work contract service? The rate of works contract (18%) and construction of building complex etc (12% if land included) is different.

Is there any clarification given in this regard?

Can anyone advise on the above.


Dhirajlal Rambhia (KVO Merau Kutchh)     17 June 2017

Dhirajlal Rambhia
KVO Merau Kutchh 
 9230 likes  93355 points

View Profile | My Other Post

For detailed analysis refer: https://tax T M L

Sunil (CA)     07 July 2017

 15 likes  185 points

View Profile | My Other Post

Sir, there is no answer for my above query. Also the article is based on the old rates in the article. The rate for construction service is fixed at 18% with a deduction of 1/3 of the total value towards land.

I feel the explanation to the section 17(5) clears that the same is  unavailability of input credit will be applicable only in case the immovable property  is capitalised.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Popular Discussion

view more »

Trending Tags
GST Live Class    |    x