TaxTMI 
TaxTMI 
In case of construction contractor doing labour job and charging 18% GST requires to purchase crane for material handling in high rise bldg,so also scaffolding material and hardware material like nails, bindingwire etc. Can he claim ITC on such input.Pl enlighten and Thanks in advance.
Input Tax Credit
30 Dec 2019 
1 Reply 
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Input tax credit denial for works contract services: construction-related inputs like cranes and scaffolding are generally ineligible.
Section 17(5)(c) of the CGST Act disallows input tax credit for works contract services supplied for construction of an immovable property other than plant and machinery; therefore purchases and services such as cranes for material handling, scaffolding materials, and consumable hardware used in building construction are not eligible for input tax credit unless they constitute an input service for further supply of works contract service. (AI Summary)
Section 17(5)(c) of the CGST Act disallows input tax credit for works contract services supplied for construction of an immovable property other than plant and machinery; therefore purchases and services such as cranes for material handling, scaffolding materials, and consumable hardware used in building construction are not eligible for input tax credit unless they constitute an input service for further supply of works contract service. (AI Summary)