Question102:
My client Mr X has industrial plot and he want to construct the plot and want to give on rent only.
Now my question is GST Paid on construction material like Cement,Dust, TMT Bar, Payment to contractor etc is elegible for ITC or not He is not in the construction business.

Answer
 As per section 17 sub-section (5)(c) ITC of input and input service used in construction is not allowed but it is allowed to the person if doing output supply of the same line. So if it is included in the bill of contractor and contractor is charging tax on total value (including cement, dust etc) then contractor can claim ITC of it.
If you are purchasing material then no ITC is available on all the input and input services used for construction of own building. (Reply dt. 24/4/2018)