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Refund of ITC for real estate business

Megha.B ( -) (73 Points)

15 April 2021

Can a construction company claim refund of unutilised ITC through Form GST RFD-01?

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6 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 15 April 2021

I think as construction works contract didn't claim ITC so unutilised ITC cannot be refunded

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Megha.B ( -) (73 Points)
Replied 15 April 2021

ITC for works contract can be availed only by person who is in the same line of business and is using such services for further supply of works contract service. My query is does it qualify under inverted duty structure since output gst is paid at 12% while itc availed is at 18% ?

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 16 April 2021

It may be in inverted duty structure as input rate is higher than outward rate

sabyasachi mukherjee (27732 Points)
Replied 16 April 2021

ITC AND UTILISATION OF CREDIT IN CONSTRUCTION BUSINESS..
1. ITC IS NOT AVAILABLE ON IMMOVABLE PROPERTY ON WORKS CONTRACT SERVICES EXCEPT IT IS USED FOR FURTHERANCE FOR BUSINESS

CA ABHAY GUPTA (Practice) (3235 Points)
Replied 16 April 2021

Yes you can claim, It is pertinent to note that the refund will be granted only for ITC of inputs. Therefore, unutilized ITC of input services will be lying in the electronic credit ledger without any recourse to refund.