Section 17 sub-section (5) Clause (d) restricts input tax credit of goods and services used by a person for construction of an immovable property (except plant and machinery) on his own account. Thus, if a person purchases construction material to provide the constructions services by using the said material, ITC shall not be available.
Authority for Advance Ruling — Input tax Credit – The applicant is a sub-contractor providing works contract service. The applicant entered into an agreement with Main Contractor for the construction of chemical Lab, Office Building and a ware house for the Contractee M/s. Luarus Labs Limited. The main contractor supplies the materials such as Cement and Concrete to the applicant for construction. The applicant purchases certain materials on its own account and uses the same in furtherance of its service. The applicant sought an advance ruling as to whether he can avail ITC on the goods purchased on his own account for furtherance of his business that are PVC Ghamela, Insulation Tape, AG-4 Grading Machine, Led Torch Light, AG-4 Cutting wheel, Tarpaulin Sheet, Binding wire, Suction Hose Pipe, Auto Level Stand, Leveling Staff 5mtrs 5 folds, Steel Tape, Safety Helmet, Safety Shoes etc. on which GST@18% is paid; wood cutting wheel etc. on which GST@12% is paid; cotton Yarn Waste Cloth etc. on which GST@ 5% is paid; Cement on which GST@28% is paid. aid immovable property;" The authority observed that Section 17 sub-section (5) Clause (d) restricts input tax credit of goods and services used by a person for construction of an immovable property (except plant and machinery) on his own account.
Held that:- The Hon’ble Authority for Advance Ruling held that Input Tax Credit shall not be available to the applicant.
Section 17 sub-section (5) Clause (d) restricts input tax credit of goods and services used by a person for construction of an immovable property (except plant and machinery) on his own account. Thus, if a person purchases construction material to provide the constructions services by using the said material, ITC shall not be available.
Authority for Advance Ruling — Input tax Credit – The applicant is a sub-contractor providing works contract service. The applicant entered into an agreement with Main Contractor for the construction of chemical Lab, Office Building and a ware house for the Contractee M/s. Luarus Labs Limited. The main contractor supplies the materials such as Cement and Concrete to the applicant for construction. The applicant purchases certain materials on its own account and uses the same in furtherance of its service. The applicant sought an advance ruling as to whether he can avail ITC on the goods purchased on his own account for furtherance of his business that are PVC Ghamela, Insulation Tape, AG-4 Grading Machine, Led Torch Light, AG-4 Cutting wheel, Tarpaulin Sheet, Binding wire, Suction Hose Pipe, Auto Level Stand, Leveling Staff 5mtrs 5 folds, Steel Tape, Safety Helmet, Safety Shoes etc. on which GST@18% is paid; wood cutting wheel etc. on which GST@12% is paid; cotton Yarn Waste Cloth etc. on which GST@ 5% is paid; Cement on which GST@28% is paid. aid immovable property;" The authority observed that Section 17 sub-section (5) Clause (d) restricts input tax credit of goods and services used by a person for construction of an immovable property (except plant and machinery) on his own account.
Held that:- The Hon’ble Authority for Advance Ruling held that Input Tax Credit shall not be available to the applicant.