Eligibility of ITC claim Issue ID 115826

[YUWRAJ KOTHARI]

Sir, in the given facts, to my knowledge,It being not Works contract(,As no trf of material being involved) nor is composite service as per item no 6 Sch-II & not covered by negative item u/sec 17(5)(c) whether ITC can be denied.Pl consider. Thanks

AI Summary

Debate on ITC Eligibility: Is it a Works Contract or Composite Service? Section 2(119), CGST Act, 2017 Discussed. A query was raised regarding the eligibility of Input Tax Credit (ITC) under the Goods and Services Tax (GST) framework, questioning whether a contract qualifies as a works contract or composite service. One respondent emphasized the need to review the contract terms to determine its nature. Another respondent clarified that under Section 2(119) of the CGST Act, 2017, a works contract involves the transfer of property in goods. They argued that since the contractor purchases materials like scaffolding and hardware, which involve such transfer, the contract is a works contract, thus ineligible for ITC under Section 17(5)(c). Another participant concurred with this interpretation.