ONE BUILDER CONSTRUCT A HOUSE TO A. THE BUILDER PURCHASE GOODS AND PROVIDE THE SERVICES LIKE MASONARY, CARPENTARY, ELECTRICIAN AND ALL OTHER RELATED SERVICE WORKS FROM THEIR OWN LABOURS AND MAN POWER AND NOT RECD ANY SERVICES FROM OUT SIDE REGARDING THIS CONSTRUCTION.
MY QUESTION IS WHETHER THE BUILDER IS ENTITLED TO CLAIM THE ITC AND AVAIL THE ITC? BECAUSE OF SEC.17(5) (c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;
Builder Eligible for ITC on Client House Construction Under GST; Section 17(5)(d) Applies, 18% Tax Rate A query was raised regarding whether a builder can claim Input Tax Credit (ITC) under the Goods and Services Tax (GST) for constructing a house without outsourcing services. One respondent clarified that the builder is eligible to claim ITC on goods used, as the construction is not on the builder's own account but for a client, making Section 17(5)(c) inapplicable. Instead, Section 17(5)(d) applies, allowing ITC utilization subject to Section 16 conditions. Another respondent agreed, noting the tax rate on the transaction should be 18%. (AI Summary)
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