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TMI BlogWorks Contract under GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, As u are aware works contract under GST is simpler to the one in previous tax regime but still some doubts persists. We are reqistered manufacturing entity, we have upcoming project related to plant expansion which involves new power plant commissioning. We are asking parties to submit quotations for various activities related to plant erection. We need to build new boilers chimney invol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving mechanical civil work. We will be issuing works contract to various vendors. Please let me know are we entitled to take ITC of 18 % GST charged by registered contractor under this new regime for the works related to plant machinery. Kindly be specific in replying the query - Reply By YAGAY and SUN - The Reply = On civil work you cannot avail ITC. - Reply By Rizwan Ullah - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = This civil work is related to erection of chimney of power plant - Reply By YAGAY and SUN - The Reply = If it is part of your Plant Machinery, then, you can avail ITC otherwise not. - Reply By Alkesh Jani - The Reply = Sir, The works contract in GST is given at Section 2 (119) is as under:- ( 119 ) works contract means a contract for building, construction, fabrication, compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract; The plant and machinery are defined by way of explanation given after the sub-section 6 of Section 17 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CGST Act, 2017 and is given below:- Explanation. For the purposes of this Chapter and Chapter VI, the expression plant and machinery means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes- (i) land, building o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r any other civil structures; (ii) telecommunication towers; and (iii) pipelines laid outside the factory premises . The ITC of plant and machinery can be availed, but not for land, building and civil structure, telecommunication towers and pipelines laid outside the factory premises. In the instant case, ITC is available for plant and machinery and for its foundation or structural s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upport, if used for making outward supply of goods or services or both, as it is excluded in terms of Section 17(5) (c) of CGST Act, 2017 . Please also note that ITC is not available in respect of civil structure. Our experts may correct me if mistaken Thanks - Reply By YAGAY and SUN - The Reply = Yes, there is a specific denial in Section 17(5) of the CGST Act in this regard. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply By VaibhavKumar Jain - The Reply = You are entitled to avail the ITC on entire work including civil works provided the civil works are integral part of construction of Boilers and capitalized in the books of accounts under the head Plant and Machinery. - Reply By Ganeshan Kalyani - The Reply = Works contract service related to plant and machinery is eligible to yake credit. Plant and mach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inery , it's support structure, chimney, boiler etc is eligible for input tax credit. However, civil structure like building, compund etc is not eligible for credit. - Reply By YAGAY and SUN - The Reply = We are in agreement with our experts' views. - Works Contract under GST - Query Started By: - Rizwan Ullah Dated:- 22-6-2018 Goods and Services Tax - GST - Got 8 Replies - GST - Disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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