Co-operative society not eligible to claim ITC on receipt of works contract services

Last updated: 19 January 2023

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A Maharashtra Appellate Authority for Advance Ruling has ruled that a co-operative housing society cannot claim Input Tax Credit (ITC) on GST paid for works contract services. The society argued it was providing these services to its members, but the authority found it was not a works contract service provider and the services were for the common benefit of members, not for further supply of works contract services. This decision upholds the restriction under Section 17(5)(c) of the CGST Act.

Court :
AAAR, Maharashtra

Brief :
The AAAR, Maharashtra in the matter of M/s. Mahavir Nagar Shiv Shrushti Co-op Housing Society Ltd. [Order No. MAH/AAAR/AM-RM/10/2022-23 dated September 30, 2022] has upheld the order passed by the AAR, Maharashtra,holding that a co-operative housing society cannot claim Input Tax Credit ("ITC") of the Goods and Service Tax (“GST”) paid to its appointed contractor for repairs, renovation and rehabilitation work carried out in the society.

Citation :
Order No. MAH/AAAR/AM-RM/10/2022-23 dated September 30, 2022

Daily Limit Reached