Jayanta Bandyopadhyay (310 Points)
28 April 2022Contractor will do civil,plumbing,sanitary ,painting to our Office Guest House. Is it a works contract? Not directly linked to factory. So,are we entitled to input tax credit on GST paid on consolidated bill? Please guide.
Also due to supply and services being different HSN/SAC, is 18% flat of varying Gst rate be applicable?
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 29 April 2022
Jayanta Bandyopadhyay
(310 Points)
Replied 29 April 2022
Sir
This is being treated as revenue spend. But it is Guedt House at City. Not within the proximity of plant. Not directly associated with production. Kindly advise.Civil,Plumbing,Painting as a composite works contract will cost Rs.13 Lakhs approx.
Rajendra Prasad
(Employee Private)
(1867 Points)
Replied 29 April 2022
As per section 17(5)(d), If the expenditure is used in the course of or furtherance of business, can avail Input Credit. Means if You are getting and revenue or sale Income against the said revenue expenditure only you are eligible.
Jayanta Bandyopadhyay
(310 Points)
Replied 29 April 2022
Sir
It is Guest House meant for outstation employees, rarely for outside buyers. Difficult to appropriate spend between sales activity and internal purpose. Rgds,
Pankaj Rawat
(GST Practitioner)
(55052 Points)
Replied 29 April 2022
yes it cover under the course & furtherance of business , can be say that it is facility being provided to employee in course of business .
CAclubindia
