ITC availability to work contractor

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..... ITC availability to work contractor
Query (Issue) Started By: - KARAN VERMA Dated:- 15-11-2019 Last Reply Date:- 20-11-2019 Goods and Services Tax - GST
Got 6 Replies
GST
Sir, i am work contractor providing work contract services in relation to construction of immovable property and raise tax invoice by charging 18% GST to recipient of service. My question is whether i am eligible to .....

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..... take ITC on purchase of cement, steel and other building construction items which are used for providing work contract services by me. Kindly clarify this. Reply By Himansu Sekhar: The Reply: Yes you can Reply By PAWAN KUMAR: The Reply: dear sir, as per clause (d) section 17 (5) CGST Act, ITC is not claimable on goods/services used for construction of immovable property subject to capitaliz .....

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..... ation in the books. since you are the works contract service provider and goods purchased by you are using in the works contract service, you are not capitalizing the said goods, ITC is eligible for you on goods purchased. even you may also claim itc on sub-contract of works contract service as input service. Reply By KARAN VERMA: The Reply: Thank you sir. Now, i need clarification for one more .....

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..... point. Can recipient to whom work contract services provide avail ITC on work contractor invoice, if recipient is builder and he further let out such building/shops on lease rent @ 18% GST. Reply By Himansu Sekhar: The Reply: No, the buidling is constructed in his own account. Reply By Ganeshan Kalyani: The Reply: The query in the sequence 3 is not eligible for credit. Reply By PAWAN KUMAR .....

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..... : The Reply: Dear Sir, It is under exclusion clause 17(5)(c) of CGST Act. Works contract service, ITC is not admissible.
Discussion Forum - Knowledge Sharing .....

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