Input credit - in the execution of construction contract

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Situation - Company A gives an order to Company B for construction of immovable property. Company B engaged one sub-contractor (C) for such work. Sub-contractor raise invoice to Company B with GST and Company B also raise invoce to Company A with GST.

Understanding - Company A unable to take input credit because of clause 9(c) of Section 16 (Chapter V) of Draft GST Act.

Quiery - Whether Company B is entitled to take input credit?

Replies (1)

Model GST Law- superceded.

 

Revised Model Law sec 17(4)(c) applicable.

 

Co B can avail the credit. However A is not eligible.

In my view this should have been allowed considering the promise of seamless credit. Industry may have to represent in this reagrd. 


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