Assessee has taken road construction contract and bill is submitted to muncipality. So can he take ITC of the cement and other material used in constructing road. please elaborate.

Reply—  Yes, ITC will be allowed on purchase of building construction materials, because as per section 17(5)(d) of CGST Act, 2017, goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account (for construction of immovable property as an asset not as an stock) including when such goods or services or both are used in the course or furtherance of business.

Here, the contractor is engaged in construction of road not for his own account so ITC is available provided GST is applicable on outward supply of road construction.