ITC for Works Contractors
If any works contractor purchased cement, bricks, steel bars for completion of construction of a building for which he got contract from a Company then will the GST paid while purchasing those raw material be available as ITC or NOT? if not then how should he charge bill to company for the work and avoid double taxation..
But it is stated in GST law that There is no ITC available to works contractor so please explain
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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