Question10: My client is providing service of construction of residential complex as well as commercial . some time he also enters in works contract service. whether he will eligible for ITC in respect of cement, steel, iron rods etc and also input service for above service. Further looking to the section 17(5) of CGST, the credit is not admissible. Whether it is right or not' please confirm the same and reply


Answer: Your client engaged in providing service of construction of residential/commercial complexes etc. is very much entitled to avail and utilize ITC of tax paid on the goods or services used in providing the said services. Section 17(5)(c) of CGST Act, 2017 prohibits ITC on inputs used in civil construction in some cases but allow the same Where the service provider uses inputs and or input services for further supply of works contract service, the ITC is very much entitled. (Reply dt. 09/11/2017)