INPUT TAX CREDIT FOR CONSTRUCTION OF HOSPITAL

[VASUDEVAN NAMBOOTHIRI]

Sir,

We are constructing a Hospital complex. We directly purchase some goods and use in construction. Are we eligible for input tax credit.

[Ganeshan Kalyani]

In my view you are not eligible to take input tax credit.

[Himansu Sekhar]

If you have undertaken wcs then you are eligible

[KASTURI SETHI]

Pure labour is exempted from GST for Govt. constructions only.Construction of private hospital or hospital complex is not exempted from GST. Since outward supply (Service) is taxable, ITC would be admissible as opined by Sh.Himansu Sekhar Sha Ji.

This is my view.

[Kishan Barai]

Correctly explained by KASTURI SETHI Sir & all.

[MUKUND THAKKAR]

constructing a Hospital as a service provider material and erection in such condition view given by Himanshuji is correct. if not as service provider but for own use. in such situation view given by Ganneshji is correct.

[KASTURI SETHI]

Sh.Mukund Thakkar Ji,

Sir, I am not deviating from the viewpoint of Sh.Himansu Sha Ji. I want to know the meaning of "For own use" here.

[MUKUND THAKKAR]

Sir,

With all respect your view is always up to mark.

own use means if I am giving contract someone for immovable property.. in such meaning..

[Himansu Sekhar]

Let the querist explain.

[Himansu Sekhar]

All the experts have given the correct opinions. If for personal works no credit is available. I meant the person is providing services. Then credit is available. My regard to all of the views.

[Monica Giri]

Dear Sir/s I have a similar query, if a hospital has taken a commercial property on lease, and is paying GST on rent, is there an option taking Input Tax Credit? since hospital services are exempted from GST.

[KASTURI SETHI]

If output service is exempted from GST, no ITC is admissible.

[subramanian vijayakumar]

Yes if it is for personal use no itc if it is a works contract os seevice then gst will be attracted

[nirali shah]

Sir,

Hospital services covered under healthcare services hence exempt and so input tax credit will not allowed for providing exempt services.

[KASTURI SETHI]

Health care services are exempted. Construction service is not exempt.

AI Summary

Input tax credit depends on whether hospital construction is a taxable works contract service or supports exempt healthcare services. Availability of input tax credit for hospital construction depends on whether the construction constitutes a taxable works contract service-entitling ITC-or is for the owner's own use or leads to exempt health care services, in which case ITC is not admissible. The key inquiry is whether the activity is a taxable outward supply; if output is exempt (including certain hospital services or rent used for exempt services), inputs attributable to that exempt supply cannot attract ITC.