Reversal of Own Consumption of Cement in Civil Immovable Structure

[Prem Choudhary]

Dear Expert

Please advice for reversal of ITC in case own consumption of Cement in Civil immovable structural work.

whether rate of reversal is @ 28% or proportion ITC used in Cement. ?

for your GST on Cement @28%

[Ganeshan Kalyani]

Sir cement used in construction is not eligible for thd input tax credit claim. Therefore, the input tax credit taken should be reversed.

[KASTURI SETHI]

In the scenario explained, ITC on cement is fully disallowed as advised by Sh.Ganeshan Kalyani Ji.

[Prem Choudhary]

Sir

Cement is own production and consumption in the scenario , in case own consumption output gst is not payable. But we need to reverse itc used in production of cement for own consumption (other then plant and machinery ) under sec 17(5)

[Mahadev R]

In terms of Section 17 (5)(d), goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.

Therefore, in the present case the inputs used in cement which in turn used in construction could get disallwed

AI Summary

Input tax credit reversal: ITC on cement used in own immovable construction must be disallowed under GST rules. Input tax credit on cement used in construction of an immovable property for own consumption is disallowed under Section 17(5)(d), so any ITC claimed on inputs used to produce such cement must be reversed; the reversal relates to the ITC attributable to construction use rather than by reference to the supply tax rate.