ITC on Real Estate: GST Input Credit for Builders#
What is ITC?#
Input Tax Credit for construction inputs.
Eligible ITC#
- Cement
- Steel
- Bricks
- Paint
- Electrical goods
- Architect fees
- Consultant fees
- Concrete
Ineligible ITC#
- Office supplies
- Motor vehicles
- Food items for staff
- Goods for construction of compound wall
Conditions for ITC#
- Must be used in project
- Invoices in project's name
- Project registered under GST
- Payment to supplier made
Calculation#
ITC = Input GST paid × Proportion used in project
Reversal#
If projects sold under composition (1%/5%), ITC must be reversed.
Conclusion#
Builders can claim ITC on construction inputs.