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Sub contractor ITC

Andrio Kyong (24 Points)

21 May 2020

In work contact can a sub contractor claim ITC from the material purchased?

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7 Replies

anmol vashisht (53 Points)
Replied 21 May 2020

Yes.He can claim itc of material purchased if he sold that material further

Andrio Kyong (24 Points)
Replied 21 May 2020

If it's sub contract of a road construction, ITC on purchase of material like bituman can be claimed?

anmol vashisht (53 Points)
Replied 21 May 2020

If the construction of road done by sub contractor .then he cannot claim itc.but if he show the work done or sale of that material to municipal council or any govt.authority then only he can claim itc.

Andrio Kyong (24 Points)
Replied 21 May 2020

The sub contractor construct on behalf of the main contractor. And at the end sub contractor raised invoice to the main contractor for the total cost including material. in this case will the sub contractor be eligible to claim the ITC for material purchased while pay tax to govt.

anmol vashisht (53 Points)
Replied 21 May 2020

Yes he is eligible to claim.that itc

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 22 May 2020

It's basically depend upon the contract or agreement between contractor or subcontractor.

Yes if supplier (Sub contractor) does any expenses on behalf of Contractor (Receptient) can claim ITC on same & liable add the same in bill raise to contractor.