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 ?
Input credit not allowed for warehouse materials under GST Section 17(5); RCM applies to unregistered service providers. A query was raised regarding the applicability of input credit and Reverse Charge Mechanism (RCM) under the Goods and Services Tax (GST) for the construction of a warehouse. The questions were whether input credit can be claimed for materials like cement and bricks and if RCM applies to payments made to contractors or vendors. The response clarified that input credit is not allowed under section 17(5) for such construction materials. Additionally, RCM is applicable if the service providers involved are unregistered. (AI Summary)
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TaxTMI 
