Vikas Sinha asked 7 years ago
ITC for Works Contractors
If any works contractor purchased cement, bricks, steel bars for completion of construction of a building for which he got a contract from a Company then will the GST paid while purchasing those raw materials be available as ITC or NOT? if not then how should he charge the bill to the company for the work and avoid double taxation?
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Deepak Bholusaria, CAVikas Sinha answered 7 years ago
But it is stated in GST law that There is no ITC available to works contractor so please explain
Sachin Agrahari answered 7 years ago
Dear Sir,
As per Provisions of Section 17(5)(c) of CGST Act, 2017 is as:
(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;
It means ITC will not available to builder because it is not an input service for further supply of works contract service but for a work contractor it is an input service for further supply of works contract service so he will be eligible to claim ITC.
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Pranita Gupta answered 7 years ago
Yes, the contractor will be eligible for claiming credit since he is engaged in further supply of Works Contract Service.
