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ITC ELIGIBLE OR NOT UNDER GST LAW

15 January 2021

If i am purchasing cement and other material and on contract basis i work repairing work and charged service invoice with GST, can i available GST input on purchase of Cement and material in works contract work

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3 Replies

MD TECHNOLOGIES (59 Points)
Replied 15 January 2021

Yes as the items are used (furtherance) for your business and not for personal work.
Composite supply of Works contract defined in clause 119 of section 2 of CGST Act is liable for 18% GST rate with full Input Tax Credit (ITC) of Inputs And Input services.

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ayusmita (Tax consultant) (5885 Points)
Replied 15 January 2021

Yes you can take itc

Shivam RC (Student) (23683 Points)
Replied 16 January 2021

Yes you can avail full ITC on cement and other construction materials purchased for supplying Works Contract Services since they are your inputs which are being used in the course of or furtherance of business.

As per the Provision of Section 16(1) of the CGST Act 2017, ITC on Inputs, Input Services and Capital Goods, "used in the course of or furtherance of business" can be claimed provisionally in your e-credit ledger. Ensure that all the Four Conditions as laid down U/s 16(2) of the CGST Act 2017 is satisfied before claiming ITC.