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Regarding ITC on work contract

manoj kumar (36 Points)

11 October 2019

is ITC can avail on work contract

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2 Replies

CA Himanshu Gandotra (Chartered Accountant) (1160 Points)
Replied 12 October 2019

Works contract is considered service as per schedule 2 of cgst act. as per section 17(5) of cgst act, itc is not available on works contract if used for construction of immoveable assets other than plant and machinery.
One exception to general rule is that itc on works contract service is available if it is used as input service to supply further the supply of work contracy services...

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Shivam RC (Student) (23683 Points)
Replied 12 October 2019

Works Contract Services is specifically BLOCKED U/s 17(5) of the CGST Act 2017.

However, ITC will be available where the works contract service is an input service for further supply of works contract service.