Question18: We engage an contract for dismantling of old Molasses tank and to construct an new one with extended capacity. All the material supplied by us. Cost of this tank is going to be capitalized. Can we avail the ITC of GST charged by the contractor in account of construction of molasses tank.



Answer: Clauses (c) and (d) of Section 17(5) of CGST Act, 2017 prohibits availing of ITC involved on goods or services civil constructions other than plant and machinery. Accordingly, in your case ITC is not entitled. (Reply dt. 04/12/2017)