Cenvat credit of cement and Steel under GST

[Guest]

Sir,

Whether cenvat credit of Cement and Steel is available for a builder under GST? and if so whether it is available on repairs and renovation also?

[Rajagopalan Ranganathan]

Madam,

As per Section 16 of CGST Act, 2017 and as per GST Input Tax Credit- Final Rules-18.5.2017 there is no restriction in availing input tax credit in respect of cement and steel. However we have to await further Notification or instructions from the Department.. As of now there is no restriction.

[Himansu Sekhar]

The credit of the inputs and capital

Goodsds under the existing law is not available beacuase of the conditions of the exemption notf. 26/12-st. If the tax is given on the full value, credit availability on all inputs will be available as per sec. 16 of the cgst act. But the picture will be clear after some days. Please wait.

[KASTURI SETHI]

Wait for every aspect till the date of implementation. Anything can be changed at the last moment, especially there is doubt about exact and actual date of implementation. It can be deferred for one month at least.

[Ganeshan Kalyani]

In September the constitutional validity would lapse. So in any case the implementation date cannot go beyond Sept.

[DR.MARIAPPAN GOVINDARAJAN]

It is likely that GST will be implemented by 01.07.2017.

AI Summary

Input tax credit availability for construction materials affirmed under GST rules, subject to pending departmental notifications and clarifications. There is no intrinsic prohibition in the GST input tax credit framework against claiming credit on cement and steel for construction and related repairs; however, entitlement remains subject to any specific exemption notifications or departmental instructions that may restrict or qualify credit availability under the GST input tax credit rules.