ITC not available to Co-op Housing Society on works contract service by contractor for repairs, renovations & rehabilitation works

In re Mahavir Nagar Shiv Srushti Co-operative Housing Society Limited (GST AAR Maharashtra)

Where the contractor has provided works contract service for repairs, renovations & rehabilitation, ITC can’t be availed by Housing Society

In M/s Mahavir Nagar Shiv Srushti Co-operative Housing Society Ltd. [GST-ARA-19/2021-22/B-94 dated November 10, 2021] Hon’ble Maharashtra Authority for Advance Ruling (MAAR) held that repairs, renovations & rehabilitation services provided by housing society to its members does not fall under the category of works contract services and is therefore not entitled to claim Input Tax Credit (ITC) under the provision of Section 17(5)(c) of the Central Goods and Services Tax Act, 2017 (the CGST Act).

M/s Mahavir Nagar Shiv Srushti Co-operative Housing Society Ltd. (the Applicant) has sought an advance ruling, that if activities of the Applicant are treated as supply under the CGST Act than whether the Applicant is entitled to claim ITC on input and inputs services for repairs, renovations & rehabilitation work done for the members.

The applicant submitted that he used the work contract services provided by M/s Unique Rehab Pvt. Ltd. (“the Contractor”) to provide further work contract services to the members of the society and hence is entitled to claim ITC of the GST paid to the contractor.

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