Construction Business - Works Contract

Mr.S is doing construction business. Explain in brief the ITC Availability of products under Works Contract. TIA.
Replies (3)
Quick Summary
This discussion clarifies the availability of Input Tax Credit (ITC) for goods and services used in works contracts within the construction industry. Generally, ITC is not available for services used in constructing immovable property, unless the works contract is for further supply of such services or involves plant and machinery. However, ITC is typically available for works contracts related to movable property. The thread also touches upon a specific scenario involving a crusher business and calculating GST returns.

If the contract is for an Immovable Property, then the ITC is not available for goods and services used in the construction of such property. However, if the Works Contract is for a Movable Property, ITC is available on goods and services used in the Works Contract.

In term of Section 17(5) (c) of CGST Act ITC is not available in respect of work contract services when supplied for construction of an Immovable property (other than plant & machinery) Except WHERE IT IS INPUT SERVICES FOR FURTHER SUPPLY OF WORK CONTRACT SERVICES.

So if it is provided to End consumer ITC is not available to End consumer But if it is provided to contractors (same line business) ITC available to contractor.
Sir,
Gst works contract registered The party supply of crusher another registered partly.
Rs. 35000 buy and sell₹ 43000.
Rs. 35000(includes gst 5%)
Rs. 45000(includes profit& transportation charges)

How gst return calculated? and gst tax rate 5% or 18%?

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