ITC on inward supply of JCB, Road roller etc. would be admissible, as do not fall under works contract services as per Section 17(5)(c) and also used for the construction of an immovable property on a sub-contract basis – Andhra Pradesh AAR

M/s Building Roads Infrastructure [AAR NO.07/AP/GST/2021 (A.A.R. – GST – Andhra Pradesh)]

In the instant case, the applicant seeks clarification on the claim of input tax credit on inward supply of the following goods, JCB, Road Roller, Grader, Hydra Crane, Transit Mixer, Generator, Excavator and Sensor Paver. The inward supply of the above mentioned goods neither fall under works contract services as per Section 17(5)(c) and these goods received by the applicant are made use of for the construction of an immovable property, which is certainly not on his own account as per Section 17(5)(d). As a matter of fact, the applicant carries out construction not on his own account, but as a sub-contractor to the main contractor who was awarded contract by NHAI.

The Authority for Advance Rulings, Andhra Pradesh held that in accordance with the facts submitted by the applicant, thus it is clear that the clauses of blocked credits under Section 17(5)(c) & (d) are not applicable to the instant case and thus eligible for claiming Input Tax Credit subject to the requisite conditions as mentioned in the Section 16(2) of the CGST Act, 2017.

To read the complete judgment 2021 Taxo.online 1415