ITC ON GOVT WORKS CONTRACTOR

931 views 3 replies
Dear Sir

Govt PWD works contractor grant tender on constract of building now he will purchase some of material like cement iron steel etc... is this he is eligible to claim that itc,

why Because 17(5) what tells

Please clarify this
Replies (3)
You are a Works Contractor so for you materials purchased is an input and as per the Provision of Section 16(1) of the CGST Act 2017, ITC of inputs, input services and capital goods used in the "course of or furtherance of business" can be claimed.

Therefore you as a Works Contractor will be eligible to claim ITC on materials purchased provided that all the as laid down under Section 16(2) of the CGST Act 2017 is fulfilled.

Section 17(5) Says that "ITC is blocked in respect of 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 service.

So, As in your case, it's for further supply of work contract, the ITC can be claimed.
So in case the input services are used for a factory employing 100 workers then it is allowed .


Factory is used for furtherance of business.
But in case , it's an apartment it won't be used but if same apartment is let out to an office.
I hope I am correct.
Thank you Sir

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details