Ashish Neel asked 5 years ago
Input Tax Credit for Contractor(Bunglow or Single House Contractor)
I am individual contractor who builds bunglows of customers(Non Registered) as per their requirements. I usually charge them as per sqaure feet construction area. I purchase all the material needed for construction like cement, sand, bricks etc. I have charged 18% gst rate and taken input of all material purchased.
My consultant told me I am not eligible for Input Tax Credit under section 16 of CGST Act. I am very confused and tensed as my tax liability will be huge.
Pls guide me
CA Sandip Agarwal answered 5 years ago
Assuming, the entire consideration is being received after receipt of completion certificate or occupancy, whichever is earlier, then,
it is not a supply & no gst needs to be paid. Since, you have claimed ITC, you need to reverse ITC.
If this is not the case, kindly contact me.
CA Sandip Agarwal answered 5 years ago
Assuming, the entire consideration is being received after receipt of completion certificate or occupancy, whichever is earlier, then,
it is not a supply & no gst needs to be paid. Since, you have claimed ITC, you need to reverse ITC.
If this is not the case, kindly contact me.
