Input tax credit on work

[Ajay Sahi]

Sir

Can contractors claim input tax on materials purchased for contruction of govt building?

AI Summary

Can Contractors Claim Input Tax Credit on Government Building Materials? Insights on Section 17(5)(c) of CGST Act 2017 A discussion on a forum addressed whether contractors can claim input tax credit (ITC) on materials purchased for constructing government buildings under the Goods and Services Tax (GST) framework. The primary consensus among participants, referencing Section 17(5)(c) of the CGST Act, 2017, was that ITC is generally not available for works contract services related to immovable property construction, except when used for further supply of works contract services. Some participants argued that ITC could be claimed if the materials are used as input services for providing works contract services, emphasizing the need for clarity on the contractor's role as a service provider or recipient.