Question ID :
44871
ITC
There are 3 parties in the cases
party A, B & C
there is an agreement b/w A &B that A ( the builder) will develop property for B ( another builder) and thereafter B will perform some alteration like re- construction & deliver it to C.
Whether the GST charged by A from B ( supply falls under schedule 2)will be available as ITC to B? pls reply with reason.
Posted by
DEEKSHA GARG
on
Jun 06, 2025
Filed Under
GST
B can take ITC of the GST charged by A only when B’s onward supply to C is a taxable supply of construction/works-contract services (i.e., “further supply of works-contract service”). If B’s onward transfer is a sale of completed immovable property (no GST) or B is under the “without ITC” real-estate rate, the credit is not available if availed, it must be reversed
Posted by
Gaurav Arya on
Aug 30, 2025