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Input on construction business

gaddala ramesh (163 Points)

10 April 2024

i am doing construction business and claiming input everything, it is correct or not

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3 Replies

sabyasachi mukherjee (27107 Points)
Replied 11 April 2024

Explain the object clause of the concern

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Money Money (383 Points)
Replied 13 April 2024

In the context of a construction business, the rules regarding the claim of Input Tax Credit (ITC) under GST (Goods and Services Tax) can be quite specific. Generally, ITC is not available for goods or services received for the construction of an immovable property on your own account, including when such goods or services are used in the course or furtherance of business1. However, there are exceptions:

Works Contract Services: ITC is not available for 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 service1.
Own Constructions: If the construction is not capitalized in the books of accounts and is considered revenue expenditure, debited to the profit & loss account, then ITC might be claimed2.
Rent/Lease: If the constructed building is given on rent or lease, there might be different considerations for claiming ITC1.
It’s important to note that these rules can be complex and may vary based on specific circumstances.