ITC in Construction Industry

[HIREN MEHTA]

Dear Sir,

Can we get a refund of Overflow of GST paid under RCM in Construction Industry if the same is not utilised for out put GST liability?

[Himansu Sekhar]

No, please refer to notf. 15/17- central tax rate

[Himansu Sekhar]

Refund of inverted duty str. Is not applicableon the items specified in sch. Ii 5 (b) I.e construction sector

[KASTURI SETHI]

Better option is to use it for the purpose of reduction of cost of supply of service.

[Vamsi Krishna]

Yes, Refund of Overflow of GST is not permitted for construction services whether it is ITC or ITC on RCM

AI Summary

Input tax credit refund restrictions: overflow of ITC under reverse charge is not permitted for construction services.
Refund of unutilised input tax credit arising under the reverse charge mechanism is not available for construction services; notifications and schedule exclusions preclude inverted duty refund in this sector, and the excess ITC should be applied to reduce supply cost rather than claimed as a refund.