SIRS
MY CLIENT HAVE ONE CIVIL CONTRACT WITH MATERIAL. THEY PURCHASED DIFFERENT RATE OF GST TAX MATERIALS (28%, 18% AND 5%). THEY CHARGED 18% ONLY IN THE INVOICE. PLEASE LET ME KNOW THEY PURCHASE CEMENT GST @ 28%. THEY ARE ELIGIBLE FOR FULL ITC CREDIT OR TO DEDCUT THE DIFFERENCE ITC OF10% GST ON CEMENT PURCHASE AS INELIGBILE ITC IN THE RETURNS.
PLEASE CLARIFY.
REGARDS
S. RAVICHANDRAN
SIR
OUR CLIENT IS CONSTRUCTING THE BUILDING WITH MATERIALS TO ONE COMPANY.
MY QUERY IS THEY PURCHASED DIFFERENT RATE OF GST FOR THE CONSTRUCTION MATERIALS (CEMENT IS 28%)
THEY CHARGED IN THE INVOICE ONLY 18%.
WHETHER THEY LIABLE TO REVERSE THE DIFFERENCE 10% ON CEMENT PORTION AS INELIGIBLE ITC OR THEY ELIGIBLE FOR THE DIFFERENCE OF THE GST FOR CARRY FORWARD.
PLEASE CLARIFY.
REGARDS
S. RAVICHANDRAN
They are eligible for the ITC on all materials and services whether at the rate of 5%, 12%, 18% or 28%. If the total is more than the 18% payable then the balance they can carry forward. Normally credit would be approximately 1-12% for contractors therefore question of c/f may not be there.
Chirag P Shah & Co. Chartered Accountant
Pune
B.Com
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S.B.G. & CO. CHARTERED ACCOUNTANTS
New Delhi
CA Inter
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CCI
Pro
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