Works contract itc

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 October 2017 Dear Experts,

We are engaged in works contract ( Composite) for construction of individual residential houses. We understand that the out put GST liability is 12% since the projects undertaken by us are only residential individual units. Please advice whether we can take full ITC on the materials purchased for and labour cost incurred for these projects?

RAMESH KUMAR SINGLA

RAMESH KUMAR SINGLA (Expert)
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15 October 2017 Yes, since no restriction has been incorporated in the exemption notification no. 20/2017 which has reduced the incidence of central tax to 12% from 18%.

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2017 Thanks Mr Ramesh for your reply. Please also clarify whether full ITC on raw materials available?.

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RAMESH KUMAR SINGLA

RAMESH KUMAR SINGLA (Expert)
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17 October 2017 Yes. Full ITC is available.

Querist : Anonymous

Querist : Anonymous (Querist)

20 October 2017 Thank you Mr Ramesh,

What would be situation if we receive advances against the ongoing projects? Out put put Tax liability arise at that point of time? if yes what document we should issue to our clients?