Input tax credit on work

[Ajay Sahi]

Sir

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

AI Summary

Input tax credit on works contract: availability disputed for immovable property construction; eligibility depends on further-supply input-service.
Availability of input tax credit on materials used in works contract services for construction of immovable property is disputed: the statute excludes ITC for such works contract services except where the inward supply is an input service for further supply of works contract service; views diverge on whether contractors (as suppliers) may claim credit on materials while recipients cannot, and commentators note reliance on council guidance and risk of future litigation if credit is taken contrary to the statutory restriction.