Can a works contractor avail ITC in respect of goods and services or both supplied for execution of govt works contract. pls clarify.
Replies (4)
Quick Summary
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.
Govt department awards certain contracts like construction of bridges, roads etc for which works contractor procures material for execution of the construction. can he avail ITC on those materials...