GST on Works Contract

[Dlip Choudhary]

GST Law mentions that input tax credit is not available for-

'works contracts services when supplied for construction of immovable property, other than plant and machinery, except where it is an input service for further supply of works contract service'

Experts view needed on the second part viz.... ' except where....supply of works contract service'

AI Summary

GST Analysis: Input Tax Credit for Works Contracts on Immovable Property-Eligibility and Exceptions Explained. A discussion on the Goods and Services Tax (GST) treatment of works contract services highlights that input tax credit (ITC) is generally not available for works contracts related to immovable property, except when the service is used for further supply of works contract services. One expert explains that if a contractor is also providing works contract services, they are eligible for ITC. Another participant agrees and provides an example involving a subcontractor charging GST to a main contractor, who can then avail ITC. Another view confirms that ITC can offset tax on outward works contract services.