itc on works contract

Yes,ITC can be claimed

any circular

Yes ITC can be taken on work contract.

The section 17(5) sub clause(d) define that...
goods or services or both received by a taxable person for construction of an immovable property [other than plant or machinery] on his own account including when such goods or services or both are used in the course or furtherance of business.

You can take ITC on work contract in following Conditions

ITC for works contract can be availed only by one who is in the same line of business and is using such services received for further supply of works contract service.

For example a building developer may engage services of a subcontractor for certain portion of the whole work. The subcontractor will charge GST in the tax invoice raised on the main contractor. The main contractor will be entitled to take ITC on the tax invoice raised by his sub-contractor as his output is works contract service. However if the main contractor provides works contract service (other than for plant and machinery) to a company say in the IT business, the ITC of GST paid on the invoice raised by the works contractor will not be available to the IT Company