Construction of office in our factory

[Narendra Soni]

Sir, In our factory, contractors are engaged to construct office building.

1. If we purchase cement & iron from market and provide him for construction+he added bricks and tiles+moram+gitty etc and employed labour and construct the building.

2.If all the Material is supplied by us from market, he employed only labour.

3.We pay also to plumber,electrician,carpenter engaged in the construction of office building.

Kindly suggest-Type of service and GST applicable to us, and whether ITC will be eligible to us in above three cases separately..

AI Summary

GST Input Tax Credit Not Available for Office Building Construction in Factory: Section 17(5)(c) Clarified A query was raised regarding the applicability of Goods and Services Tax (GST) and Input Tax Credit (ITC) eligibility for constructing an office building within a factory using contractors. The query outlined three scenarios: purchasing materials and hiring labor, supplying all materials and hiring labor, and paying additional tradespeople like plumbers and electricians. Two responses clarified that ITC is not available for the construction of immovable property, such as buildings, unless it is for further supply of works contract services, referencing Section 17(5)(c) of the CGST Act, 2017.