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?
Model GST Law- superceded.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.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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