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
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.
CAclubindia
