Goods and Services Tax

Works Contract under GST

Goods and Services Tax – Started By: – Rizwan Ullah – Dated:- 22-6-2018 Last Replied Date:- 26-6-2018 – Sir,As u are aware works contract under GST is simpler to the one in previous tax regime but still some doubts persists. We are reqistered manufacturing entity, we have upcoming project related to plant expansion which involves new power plant commissioning. We are asking parties to submit quotations for various activities related to plant erection. We need to build new boilers & chimney involving mechanical & civil work. We will be issuing works contract to various vendors.Please let me know are we entitled to take ITC of 18 % GST charged by registered contractor under this new regime for the works related to plant & machine

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ods or in some other form) is involved in the execution of such contract; The plant and machinery are defined by way of explanation given after the sub-section 6 of Section 17 of CGST Act, 2017 and is given below:- Explanation.-For the purposes of this Chapter and Chapter VI, the expression plant and machinery means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes- (i) land, building or any other civil structures; (ii) telecommunication towers; and (iii) pipelines laid outside the factory premises . The ITC of plant and machinery can be availed, but not for land, buildin

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