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contractor work itc

VIKAS KUMAR SHARMA (GST Practioner) (735 Points)

02 January 2019

Sir, one of my client proprietor concern construction firm and he is working with material and without material (labour rate) both (for different company ).
Can he claim ITC on purchase of material?
Regards
Vikas

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4 Replies

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 02 January 2019

Yes , ofcourse he can claim ITC.

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Durgesh Vashisth (Financial Consultant) (252 Points)
Replied 02 January 2019

Dear Mr. Vikas,

As per Section 17(5) of CGST Act, the Input tax Credit of Goods and Services used for construction of "Immovable Property" are not allowed.

Thanks & Regards

Durgesh Vashisth

9899812287

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 03 January 2019

Work contractor who further supplies his services can claim ITC on his Inward supplies ................For example......CA is building his office in that case the CA cant avail the ITC on work contract services, but at same time the work contractor who is providng services to CA is entitled take ITC in his Inward supplies. Few more conditions 1.Work contractor providing services to Builder.... Worker contractor can avail ITC in his inward supplies, Builder can avail ITC on his inward supplies. 2. Worker contractor providing service to End customer. (whether registered or not) Work contractor can take ITC in his inward supplies , but the customer cant 1.Work contractor providing services to Builder.... Worker contractor can avail ITC in his inward supplies, Builder can also avail ITC '’''''''':******** Hence ITC for works contract can be availed only by one who is in the same line of business and is using such services received for further supply of works contract service.

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