Goods and Services Tax

Land Development charges-eligible for ITC?

Goods and Services Tax – Started By: – BHAVESH JHALAWADIA – Dated:- 15-7-2018 Last Replied Date:- 17-7-2018 – Land occupied by company. Company is going to construct factory over the land. Factory is for chemical business. In order to construct the factory over the land, first land is to be properly developed Contract is given for development of land. Contractor issues bill of works contract for development work over the land. Whether ITC is available or not?. – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Section 17 (5) (c) of CGST Act, 2017 works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works con

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t and machinery. ITC is admissible on construction of plant and installation of machinery.(ii) Land development is an input service for same service i.e. Works Contract Service. Land development is very much basis of providing Works Contract Service. What is the legal definition of a 'plant' ? What is classification of 'land development' ? These have to be taken care of. Remote possibility of litigation cannot be ruled out due to jugglery of words used in the exclusion clause. – Reply By Rajagopalan Ranganathan – The Reply = Sir,In view of the opinions of the experts it is better to get an advance ruling on the question. – Reply By KASTURI SETHI – The Reply = I agree with Sh.Rangarajan Sir. I am sure you will win and thus sa

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