Sir, i am work contractor providing work contract services in relation to construction of immovable property and raise tax invoice by charging 18% GST to recipient of service.
My question is whether i am eligible to take ITC on purchase of cement, steel and other building construction items which are used for providing work contract services by me.
Kindly clarify this.
Contractor Eligible for ITC on Cement and Steel if Not Capitalized; Builder Leasing Property Cannot Claim ITC. A work contractor inquired about the eligibility to claim Input Tax Credit (ITC) on materials like cement and steel used in providing construction services. Responses indicated that ITC is generally not claimable on goods used for constructing immovable property if capitalized, but since the contractor is not capitalizing these goods, ITC is eligible. Additionally, ITC on subcontracted services is also claimable. However, for a builder recipient who leases out the constructed property, ITC on the contractor's invoice is not admissible due to exclusion clauses in the CGST Act. (AI Summary)
TaxTMI 
TaxTMI 
