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Block Credit - Goods or Services or both received by a taxable person for construction of an immovable property (except plant or machinery) [Section 17(5)(d) of CGST Act] - GST Ready Reckoner - GSTExtract Block Credit - Goods or Services or both received by a taxable person for construction of an immovable property (except plant or machinery) Section 17 (5) Clauses (d) Goods or Services or both received by a taxable person for construction of an immovable property (except plant or machinery) 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. Meaning of Work contract define in section 2(119) of CGST Act Works contract means contract for building ,construction, fabrication, completion, erection installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property where in transfer of property in goods ( whether as goods other form) is involved in the execution of such contract. Meaning of construction define in the explanation for the purpose of clauses (d) of section 17(5) of CGST Act Construction means includes re -construction, renovation, addition or alteration or repairs to extent of capitalization to said immovable property. Meaning of plant machinery define in the explanation for the section 17(5) of CGST Act Plant 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 Land, building or any civil structures, Telecommunication tower, Pipelines laid outside the factory premises. Examples Example 1:- Sidhi Ltd. is a registered manufacturer engaged in taxable supply of goods. Sidhi Ltd. purchased goods used for setting up telecommunication towers. In this case, as per provision mention above, ITC on goods used for setting up telecommunication tower by a Sidhi Ltd. Telecommunication tower exclude from definition of plant or machinery, construct on his own account, is blocked even when such goods used in the course or furtherance of business. Example 2:- B.S. Farms has himself build the marriage hall for which he has received various goods such a cement, steel, sand, tiles, bathroom fitting etc. as inputs and services by architect, labour contractor etc. as input services. he is using the hall to rent out to customers for occasions. In that case, as per provision mentioned above, construct on his own account, is blocked even when such goods used in the course or furtherance of business. No ITC is available on any goods or services received by him for such construction and the same cannot be claimed by him.
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