ITC can be availed on plant & machinery as defined in the explanation to Section 17 i.e., on apparatus, equipment & machinery fixed to earth by foundation or structural support; which means plant & machinery and machine foundation are eligible for ITC.
Input tax credit— Section 17(5) of CGST Act— In the instant case, applicant has constructed a factory building wherein they have hired works contractors for executing the construction.
The advance ruling is sought on availability of ITC on GST charged by the contractor supplying service of works contract.
The following points can be considered for determining claim of ITC—
1. ITC cannot be availed on works contract services for construction of an immovable property except for erection of plant & machinery.
2. ITC can be availed on plant & machinery as defined in the explanation to Section 17 i.e., on apparatus, equipment & machinery fixed to earth by foundation or structural support; which means plant & machinery and machine foundation are eligible for ITC.
3. Plant & machinery will not include building or other civil structures and pipelines laid outside factory premises.
4. ITC cannot be availed on goods or services or both received by a tax payer on his own account for construction of immovable property.
Held that— the applicant is eligible for ITC to the extent of machine foundation only.
ITC can be availed on plant & machinery as defined in the explanation to Section 17 i.e., on apparatus, equipment & machinery fixed to earth by foundation or structural support; which means plant & machinery and machine foundation are eligible for ITC.
Input tax credit— Section 17(5) of CGST Act— In the instant case, applicant has constructed a factory building wherein they have hired works contractors for executing the construction.
The advance ruling is sought on availability of ITC on GST charged by the contractor supplying service of works contract.
The following points can be considered for determining claim of ITC—
1. ITC cannot be availed on works contract services for construction of an immovable property except for erection of plant & machinery.
2. ITC can be availed on plant & machinery as defined in the explanation to Section 17 i.e., on apparatus, equipment & machinery fixed to earth by foundation or structural support; which means plant & machinery and machine foundation are eligible for ITC.
3. Plant & machinery will not include building or other civil structures and pipelines laid outside factory premises.
4. ITC cannot be availed on goods or services or both received by a tax payer on his own account for construction of immovable property.
Held that— the applicant is eligible for ITC to the extent of machine foundation only.