Input Credit and RCM on on construction of warehouse?

[Guest]

1. Can Input credit be claimed on construction of warehouse and can Input credit be claimed with respect to materials like cement, bricks purchased for that ?

2. Is RCM applicable on payment made to contractor, vendor of materials for construction of warehouse ?

[Himansu Sekhar]

1. No it is forbidden under sec 17(5)

2.If the service providers are unregistered, RCM is a applicable

AI Summary

Input tax credit on construction disallowed under GST; reverse charge applies when service provider is unregistered. Input tax credit for materials and services used in constructing a warehouse is disallowed under section 17(5); items such as cement and bricks used in creating or enhancing a capital asset are not eligible. The reverse charge mechanism applies where the service provider or supplier is unregistered, making the recipient liable to pay tax under RCM for contractor or material-supply services.