Dear Experts and friends,
As per Sec. 17(5), ITC not available in case of:
"(c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service"
"(d) 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. "
Now Whether GST Input Credit is available to the Real Estate Company in the following CASES (Considering the above ITC restriction):
1) A Real Estate Company sub-contracts construction of flats to other contractors and sell those flats to other prospective buyers.
2) A Real Estate Company constructs flats itself and sell those flats to other prospective buyers.
3) A Real Estate Company incurs inputs on construction of flats (Either sub-contracted to other contractor OR constructs itself) but the Company has both Sold Flats and unsold flats. (I believe ITC in respect of Unsold Flats not available).
Please kindly suggest.
CAclubindia
