{"id":95,"date":"2015-05-02T13:13:41","date_gmt":"2015-05-02T13:13:41","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=95"},"modified":"2023-04-25T15:04:14","modified_gmt":"2023-04-25T09:34:14","slug":"input-credit-on-construction-services","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/input-credit-on-construction-services\/","title":{"rendered":"Input credit on Construction Services"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d9fbe927240\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d9fbe927240\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/input-credit-on-construction-services\/#Input_Credit_on_Construction_Services\" title=\"Input Credit on Construction Services\">Input Credit on Construction Services<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/input-credit-on-construction-services\/#ITC_ON_SERVICES_TAX\" title=\"ITC ON SERVICES TAX\u00a0\">ITC ON SERVICES TAX\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/input-credit-on-construction-services\/#ITC_IN_CONSTRUCTION_SECTOR\" title=\"ITC IN CONSTRUCTION SECTOR\u00a0\">ITC IN CONSTRUCTION SECTOR\u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/input-credit-on-construction-services\/#Availability_of_ITC_for_a_Works_Contract_under_GST\" title=\"Availability of ITC for a Works Contract under GST :\">Availability of ITC for a Works Contract under GST :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/input-credit-on-construction-services\/#ITC_Availability_for_Self-Constructed_Structures\" title=\"ITC Availability for Self-Constructed Structures:\">ITC Availability for Self-Constructed Structures:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/input-credit-on-construction-services\/#Summary_of_GST_ITC_in_Constructed_Sector\" title=\"Summary of GST ITC in Constructed Sector\u00a0\">Summary of GST ITC in Constructed Sector\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Input_Credit_on_Construction_Services\"><\/span><span style=\"color: #000080;\"><strong>Input Credit on Construction Services<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/31.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9024\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/31.png\" alt=\"www.carajput.com; Contect with us\" width=\"830\" height=\"545\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ITC_ON_SERVICES_TAX\"><\/span><span style=\"color: #ff0000;\">ITC ON SERVICES TAX\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>RULE 2(l): Input Services<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #808000;\"><strong>\u00a0\u201cInput Service\u201d<\/strong><\/span> means any service,-<\/p>\n<ul style=\"text-align: justify;\">\n<li>It is used by a provider of output service for providing an output service; or<\/li>\n<li>used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products, up to the place of removal, and includes services used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation up to the place of removal;<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #808000;\"><strong>But excludes <\/strong><strong>services,-<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">(A) Specified in sub-clauses (p), (zn), (zzl), (zzm), (zzq), (zzzh) and (zzzza) of clause (105) of section 65 of the Finance Act (hereinafter referred as specified services), in so far as they are used for-<\/p>\n<p style=\"text-align: justify;\">Construction of a building or a civil structure or a part thereof; or<\/p>\n<p style=\"text-align: justify;\">laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or<\/p>\n<table style=\"height: 330px;\" width=\"819\">\n<tbody>\n<tr>\n<td width=\"291\">Sec. 65(105)(p)<\/td>\n<td width=\"291\">Architect\u2019s Services<\/td>\n<\/tr>\n<tr>\n<td width=\"291\">Sec. 65(105)(zn)<\/td>\n<td width=\"291\">Port Services<\/td>\n<\/tr>\n<tr>\n<td width=\"291\">Sec. 65(105)(zzl)<\/td>\n<td width=\"291\">Other Port services<\/td>\n<\/tr>\n<tr>\n<td width=\"291\">Sec. 65(105)(zzm)<\/td>\n<td width=\"291\">Airport Services<\/td>\n<\/tr>\n<tr>\n<td width=\"291\">Sec. 65(105)(zzq)<\/td>\n<td width=\"291\">Construction services in respect of commercial or industrial buildings or civil structures<\/td>\n<\/tr>\n<tr>\n<td width=\"291\">Sec. 65(105)(zzzh)<\/td>\n<td width=\"291\">Construction services in respect of residential complexes<\/td>\n<\/tr>\n<tr>\n<td width=\"291\">Sec. 65(105)(zzzza)<\/td>\n<td width=\"291\">Works contract service<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul style=\"text-align: justify;\">\n<li>The definition of input services excludes (a) Construction of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods. Thus <a href=\"https:\/\/carajput.com\/services-vat.php\">CENVAT CREDIT<\/a> of service tax paid for such specified services are not allowed.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"ITC_IN_CONSTRUCTION_SECTOR\"><\/span><span style=\"color: #ff0000;\">ITC IN CONSTRUCTION SECTOR\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Availability_of_ITC_for_a_Works_Contract_under_GST\"><\/span><span style=\"color: #000080;\">Availability of ITC for a Works Contract under <a href=\"https:\/\/www.caindelhiindia.com\/blog\/application-of-gst-on-contribution-by-rwa-members\/\">GST<\/a> :<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Except for plant and machinery, ITC is not applicable on works contract services supplied for the building of an immovable property.<\/li>\n<li>ITC for works contract, on the other hand, can only be obtained by those who are in the same line of business and who use such services for the continuing supply of works contract services.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"ITC_Availability_for_Self-Constructed_Structures\"><\/span><span style=\"color: #000080;\">ITC Availability for Self-Constructed Structures:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>ITC is not eligible for goods\/services\/both obtained by a taxable person for the building of an immovable property (other than plant or machinery) on his own account, even if such goods or services or both are utilised in the conduct or furtherance of his business. Can ITC be claimed for GST paid on the building of immovable property that will be rented out?<\/li>\n<li>With the help of an interesting case, Safari Retreats Private Limited against Chief Commissioner of Central Goods and Service Tax, we will shed light on this concept (Orissa High Court)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Summary_of_GST_ITC_in_Constructed_Sector\"><\/span><span style=\"color: #000080;\">Summary of GST ITC in Constructed Sector\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24394\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/construction-sector..jpg\" alt=\"ITC on construction sector\" width=\"1221\" height=\"1072\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/construction-sector..jpg 1221w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/construction-sector.-300x263.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/construction-sector.-1024x899.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/construction-sector.-768x674.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/02\/construction-sector.-800x702.jpg 800w\" sizes=\"(max-width: 1221px) 100vw, 1221px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Input Credit on Construction Services ITC ON SERVICES TAX\u00a0 RULE 2(l): Input Services \u00a0\u201cInput Service\u201d means any service,- It is used by a provider of output service for providing an output service; or used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[2620,2621,2619,2622],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/95"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=95"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/95\/revisions"}],"predecessor-version":[{"id":18869,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/95\/revisions\/18869"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=95"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=95"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=95"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}