Captive consumption of Tmt bars

This discussion addresses the Goods and Services Tax (GST) implications for TMT bar manufacturers who use their own manufactured bars for constructing their own buildings. Key questions revolve around whether Reverse Charge Mechanism (RCM) applies and the treatment of Input Tax Credit (ITC). The consensus is that ITC is generally blocked for building construction under Section 17(5) of the CGST Act, requiring reversal with interest if claimed. When using own TMT bars for construction, GST is applicable at the normal rate, and RCM does not apply. Transferring raw materials between units in the same state can be done via delivery challan, but inter-state transfers require a taxable tax invoice.