GST ITC on works contract not available

By | June 6, 2017
(Last Updated On: June 6, 2017)

Q: Service Tax on Works Contract is 10.5%(50/50 under RCM- existing Reverse Charge Mechanism).What would be GST on works contract and whether any credit will be available to Receiver ?

Pl see Section 17 (5)(c ) and (d) of CGST Act, 2017

[ As per Section 17 (5)(c ) and (d) of CGST Act, 2017 : No Input tax credit shall not be available in respect of the following  :-

(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;

(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.

Explanation.—For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property; ]

[ Reply  as per Twitter Account of Govt of India for GST queries of Taxpayers ]

GST ITC on works contract not available

Read Other related GST Questions / Queries replied 

Leave a Reply

Your email address will not be published. Required fields are marked *