State with reasons, whether the following statements are true or false under GST law: Expenditure incurred on construction of factory building is ₹ 18,40,000 including GST of ₹ 2,80,000. The GST amount is not eligible fo

CS Professional · Advanced Tax Laws · PYQS · December 2019
State with reasons, whether the following statements are true or false under GST law: Expenditure incurred on construction of factory building is ₹ 18,40,000 including GST of ₹ 2,80,000. The GST amount is not eligible for input tax credit.

Answer & Explanation:

True. As per clause (c) and (d) of Section 17(5) of the CGST Act, tax charged on works contract service or goods or services used for construction of immovable property on its own account shall not be eligible for input tax credit.

Topics: Goods and Services Tax (GST)

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