Q. 158 Whether building contract who collect GST@12% can take the input tax credit of his input goods and services, like, Cement, Steeel, Bricks, labour bill, consultancy charges etc ?

Ans. In terms of section 17(5) of the CGST Act, 2017, input tax credit on works contracts belonging to buildings is not available. However, ITC can be claimed by the taxpayer who is in the same line of business and is using the above services for further supply of work contract services.

Q. 157 One of my known colleague has set up a Co in India .This Co acts as a mediator / Agent /Service Provider to different foreign Principals.They follow up with various Indian customers to place orders on the foreign Principals. The foreign Principals supply directly to the Indian Companies & get their payments. My colleague gets a Commision for the efforts put in . Pls confirm if he has to pay GST (reverse charge or in any other way)on the commission proceeds received ?

Ans. The above-mentioned services fall in “intermediary” and considering section 13(8)(b) of the IGST Act, 2017, the place of supply of intermediary services shall be the location of the supplier of services. Since, services of the intermediary are in taxable territory, therefore the above services are taxable under forward charge. However, this is a very subjective matter of litigation, you are required to take a detailed opinion.

Q. 156 Some invoices are not reflecting in GSTR-2B but are present in our books. Can we take ITC on those invoices ? If those invoices are of March 2022, and are showing in GSTR- 2B of April 2022, explain when can we take ITC on those invoices ?

Ans. In respect of rule 36(4), ITC cannot be claimed for the invoices which are not reflecting in GSTR-2B. Further, as per section 16(4), ITC on those invoices which are reflecting in succeeding months can be claimed before 30th November 2022 or furnishing of annual return, whichever is earlier.