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Gst on works contract

07 September 2020

if my client provide works contract service of extension of housing property. can he claim itc? and what will be the rate for output tax liability for this?

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3 Replies

Shivam RC (Student) (23683 Points)
Replied 07 September 2020

Yes the Works Contractor can claim ITC on inputs, input services and capital goods. However the ITC on GST paid by the recipient to the works contractor is BLOCKED under Section 17(5) clause (c) of the CGST Act 2017 in the hands of the Recipient.

The GST Rate applicable on Works Contract Service is 12%.

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Anshuman Basu (account -GST) (1556 Points)
Replied 07 September 2020

Please tell details .

Vikas Mahajan (157 Points)
Replied 07 September 2020

And what about if he takes plot from customer and construct it for customer with material. is it fall under works contract or real estate contract. can he avail itc in this case? and what will be the output tax rate?