Case Law Details
Superintendent of Central Tax (GST AAAR Andhra Pradesh)
The applicant in this appeal seeks a ruling on whether he can avail credit on goods and services used to provide Works Contract Service to the Principal. As seen from the narration above, there is no bar under Section 17(5)(C) to prevent the applicant from availing ITC on goods and services used in supplying Works Contract Service.
The final provision to be examined to ascertain the eligibility of ITC to the applicant in providing Works Contract Service, is Section 17(5)(d) of the CGST Act, 2017.
Section 17(5) (d) reads as goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.
As per the records of this case, the applicant is engaged in the supply of works contract services for reconstruction of roads for the APPR Department. As such, the applicant cannot be said to be undertaking the activity on his own account. The embargo of section 17(5)(d) of the CGST Act, 2017 is when the construction activity is undertaken “on his own account”. As such, the restriction of the said Section 17(5)(d) is not applicable in the present case and it does not bar the applicant from availing ITC in providing Works contract service for road construction to the APPR Department.
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