Gst on construction

Dear All,

Suppose a contractor provides construction & repairing service of house and commercial buildings

He provides service in two ways .

1.Either provide lumpsum quote to client and  he himself purchases material and provides labour then he is eligible to get input tax credit paid on materials like cement, bricks and steel etc.

2.if only provides only labour service to client and client himself makes the purchase then he is eligible for other input tax credit?

Rate of gst on construction service and suppose he provides service to registered in GST (B2B) then purchaser can cailm the input tax credit?

Kindly guide me and thanks ..

Replies (5)
1. Yes he is eligible to claim ITC

2. Only Labour Services : As per Notification 12/2017 CT (r) under s.no.10 is Exempted. So as per section 17(2) he is not eligible take ITC

Rate of construction services is 18%

In Case supplier of service : ITC can be claim is not depend upon to whom its being provided.
if he is providing exempted services only cannot claim ITC , if providing Taxable services can claim ITC

ITC for Work contract services can be avail by Recepient only if He is in same line business, like Builder, Contractor , sub contractor
Dear Pankaj sir, Thanks..I am agree with your second answer. But still have doubt on first question as construction contracts are covered in works contracts services and in works contract supplier is not eligible for input tax credit? Am I right sir? Any suggestions or advice sir?

NO YOU ARE NOT CORRECT ,WORK CONTRACT SERVICE PROVIDER IS ELIGIBLE TO FOR INPUT TAX CREDIT.

ONLY IN CASE WORK CONTRACTOR CANNOT AVAIL ITC , SUPPOSE IF WORK CONTRACTOR IS CONSTRUCTING HIS OWN OFFICE IN THAT CASE HE CANNOT AVAIL ITC

 

Ok sir.. Thanks sir..now i dont have any doubt...

you are always welcome dear

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details