ITC on govt contact works

This discussion clarifies whether works contractors can claim Input Tax Credit (ITC) on goods and services used for government works contracts. The consensus is that contractors are generally eligible to claim ITC on inward supplies when these are used for further supply, including for government projects like construction. However, restrictions under Section 17(5)(c) and (d) of the CGST Act 2017 may apply, particularly regarding plant and machinery or if the inward supply is not for similar business purposes.