Gst on works contract

This discussion clarifies GST implications for works contract services, specifically concerning housing property extensions. It confirms that works contractors can claim Input Tax Credit (ITC) on inputs, input services, and capital goods used. However, it highlights that ITC on GST paid by the recipient to the works contractor is blocked under Section 17(5)(c) of the CGST Act 2017. The applicable GST rate for works contract services is 12%. The thread also touches upon scenarios where a contractor takes a plot and constructs for a customer, questioning if this falls under works contract or real estate contract and its impact on ITC and output tax rates.