GST: Construction of civil structures like bridges, roads entitled to ITC refund, says official

The GST Council is likely to clarify that going ahead, the construction of civil structures, like bridges, roads, etc., which are not intended for sale to a buyer, will get a refund of the accumulated input tax credit (ITC) from the date the notification is issued, a senior government official told Moneycontrol.

In a departure from the stand taken in the case of the online gaming sector, wherein Goods and Services Tax (GST) notices have been sent ‘retrospectively,’ the Council is likely to clarify that the tax  notification will apply only prospectively, so that no demands are raised for the earlier period, the official said.

“In the previous GST Council meeting, it was discussed if the construction of bridges, roads, etc., which are civil structures, should get a refund of the accumulated ITC. The refund was ruled out for real estate that’s sold. We have agreed that we will not rake up past cases. The clarification will be issued in the next meeting,” he said.

Stakeholders have sought a clarification on the refund of accumulated ITC for bridges and roads, as there was no uniform stand being taken by states.

Source: Money control