TaxTMI 
TaxTMI 
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
Eligibility of ITC claim Issue ID 115826
31 Dec 2019 
3 Replies 
1581 Views Asked by
Works contract classification can trigger ineligibility to claim input tax credit when transfer of goods occurs in performance.
If performance involves transfer or incorporation of goods (for example scaffolding, nails, binding wire), the contract qualifies as a works contract; consequently supplies amounting to transfer of property in goods in execution of the contract render input tax credit ineligible under the statutory provision denying ITC for such supplies. Contract terms and the factual nature of goods supplied must be examined. (AI Summary)
If performance involves transfer or incorporation of goods (for example scaffolding, nails, binding wire), the contract qualifies as a works contract; consequently supplies amounting to transfer of property in goods in execution of the contract render input tax credit ineligible under the statutory provision denying ITC for such supplies. Contract terms and the factual nature of goods supplied must be examined. (AI Summary)