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Can builder take itc of cement

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naresh

78 Points Posted on 23 March 2022

dealer is registered as service provider who was getting half building made by contractor whose itc builder /dealer was taking till now.
now, contractor is gone and builder started taking cement/tiles etc. bills in his own name.
can builder take this itc ?
(cc is not yet received).
my view--> yes, builder/dealer can take provided he gets his rc amended to include works contractor
please guide me,

regards, ca kunjan, 9222 9222 92, mumbai

Replies (7)

Quick Summary

This discussion explores whether a builder, registered as a service provider, can claim Input Tax Credit (ITC) on cement and other materials. The builder initially used a contractor but is now purchasing materials directly and claiming ITC. Experts weigh in on the conditions for claiming ITC, particularly if the materials are used for the furtherance of business, such as in a residential or commercial project intended for sale.

Eswar Reddy S

CFO- at NHTF

15022 Points Posted on 23 March 2022

Yes ..Builder can avail ITC

Balaji.d

82 Points Posted on 23 March 2022

Further supply goods are services even then ITC availed on construction services in further supply

sabyasachi mukherjee

Profession

19978 Points Posted on 23 March 2022

Builder can take input tax credit of cement provided used for furtherance of business.
If the builder uses that cement in construction of own house used for residential purpose then there is no problem.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 23 March 2022

Whether residential project or commercial and when did it commenced?

Balaji.d

82 Points Posted on 24 March 2022

Owner of property will not take itc there for not at all further supply that means ending stage recipient not take itc

CA Kunjan - www.canaresh.com

www.canaresh.com

304 Points Posted on 24 March 2022

further facts --> builder commenced work via contractor in 2010 today, building is 70% complete and now , since jan 2022, builder taking itc of cement etc. himself as contractor left. its a residential mumbai one building project to be sold to retail flat buyers and few shops for commercial sale.

so i am concluding no need to change rc as works contractor and continue taking itc of all itc, mainly cement, tiles, machines etc. right?