BMC Associates says Replied on 1st August,2026 04:13 AM

Section 17(5)(c) of the CGST Act, 2017 blocks Input Tax Credit (ITC) on works contract services when they are used for the construction of an immovable property (other than plant and machinery) on the taxpayer's own account. Therefore, if a business hires a contractor to construct its office building or factory, the GST paid on such works contract services is generally not eligible for ITC. However, there is an important exception. ITC is allowed when the recipient is further supplying works contract services. For example, if a construction company engages a subcontractor for executing a works contract, the GST paid to the subcontractor is eligible as ITC because it is used for providing another works contract service. Thus, ITC is blocked only in specified cases under Section 17(5)(c) and is not disallowed in every works contract transaction. For expert guidance on GST provisions, blocked credits, and works contract taxation, businesses often consult experienced chartered accountant firms in gurgaon. A qualified chartered accountant gurgaon, trusted ca firm in gurgaon, or professional ca in gurgaon can help ensure proper GST compliance and maximize eligible Input Tax Credit.