DOUBT ON WORKS CONTRACT INPUT

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... DOUBT ON WORKS CONTRACT INPUT
Query (Issue) Started By: - RV PERUMAL Dated:- 1-6-2023 Last Reply Date:- 3-6-2023 Goods and Services Tax - GST
Got 2 Replies
GST
ONE BUILDER CONSTRUCT A HOUSE TO A. THE BUILDER PURCHASE GOODS AND PROVIDE THE SERVICES LIKE MASONARY, CARPENTARY, ELECTRICIAN AND ALL OTHER RELATED SERVICE WORKS FROM THEIR OWN LABOURS AND MAN POWER AND NOT RECD ANY SERVICES F .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ROM OUT SIDE REGARDING THIS CONSTRUCTION. MY QUESTION IS WHETHER THE BUILDER IS ENTITLED TO CLAIM THE ITC AND AVAIL THE ITC? BECAUSE OF SEC.17(5) (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; Reply By Padmanathan Kollengode: The Reply: RV Perum .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... al sir, Yes. In my view, the Builder is eligible to avail and utilize ITC on goods used (as you mentioned there is no input services) in rendering the works contract service. In this case, applicability of section 17(5)(d) is more appropriate to be discussed and not section 17(5)(c) since the builder is not availing ITC on "works contract service" which is covered under clause (c). Sec .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tion 17(5)(d) reads as:- (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. In this case, the builder is receiving the goods for construction of immovable property BUT the construction is not on his o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... wn account. The construction is on account of his client. Therefore, the above restriction will not apply to the builder and he can avail and utilize the ITC subject to conditions in section 16. Reply By Shilpi Jain: The Reply: Credit would be eligible. Hope the tax paid on this transaction on the amount received from the customer is @ 18%.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X