Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Government contract Work

Venkatesh K N (student) (178 Points)

03 September 2018

A government contractor who takes contract from government(local authority), will liable to pay a 12%GST...

Can i claim an ITC on the goods purchased for this work?

Reply
Follow
Share

6 Replies

Vinod Babu (24191 Points)
Replied 03 September 2018

Yes, you can claim ITC.
Goverment work contracts will be liable to pay 12% gst.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Venkatesh K N (student) (178 Points)
Replied 03 September 2018

(In Government contract) For Concrete road, Can i take ITC on cement & Iron purchase?

Vinod Babu (24191 Points)
Replied 03 September 2018

Yes you can claim ITC.

1 Like

Venkatesh K N (student) (178 Points)
Replied 03 September 2018

@ Vinod Babu sir, send me is there any notification available about this topic...
Please,

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 03 September 2018

As per section 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;

Means :ITC for works contract can be availed only by one who is in the same line of business and is using such services received for further supply of works contract service

For Example : Worker contractor providing service to End customer. (whether registered or not)
Work contractor can take ITC in his inward supplies , but the customer cant.

Henc You can claim ITC on your inward supply (which you have further supplied Govt)

2 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Vinod Babu (24191 Points)
Replied 03 September 2018

Good explanation Pankaj ji....