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All QuestionsCategory: GST ConsultancyInput Tax Credit for Contractor(Bunglow or Single House Contractor)
Profile photo of Ashish NeelAshish Neel asked 3 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

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2 Answers
Profile photo of Sandip AgarwalCA Sandip Agarwal answered 3 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.
 

Profile photo of Sandip AgarwalCA Sandip Agarwal answered 3 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.