ITC ON SERVICES RECEIVED FROM CONTRACTORS

This query is : Resolved

ANSHUKA BATHLA (Querist)
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10 December 2019
A local authority (nagar Nigam) registered under gst is receiving services from contractors for making roads, buildings or receiving services of garbage and sanitation etc. Whether the said local authority is eligible to take ITC on services received from the contractors.The said local authority also have taxable outward supplies in respect of rent received etc.

Rajesh Kumar

Rajesh Kumar (Expert)
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11 December 2019 Municipal services provided by local authorities are exempted from payment of GST. The services you are mentioning are input supplies required to provide exempted services. Thus, ITC shall not be available.