BLOCKAGE OF ITC. DISTINCTION BETWEEN SECTION 17 5 c & d - Goods and Services Tax - GST

Section 17 of the CGST Act provides for the blockage of ITC in respect of specified situations. Among them Section 17 [5] [c] [d] relating to works contract are as under: (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. However there is persistent ambiguity for some taxpayers engaged in the works contract business as to the application sub-section 5[c] which speaks about supply and 5[d] speaks of receipt and the precise circumstances thereof. Experts are requested to clear the doubt with illustrations in the larger interest of all visitors.