Whether Civil construction for Chimney and base constructed for Plant and Machinery? whether eligible for ITC credit??

Reply—ITC on goods and service for construction of plant or machinery is allowed under GST, however as per explanation given under section 17 of CGST Act, Plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes-

(i) land, building or any other Civil structures;

(ii) telecommunication towers; and

(iii) pipelines laid outside the factory premises.

The Civil structures under consideration is squarely falls other Civil structures which is excluded as per the explanation to the proviso as stated above.  Hence, the claim of ITC is not justifiable.

ITC of construction of Civil structure required for installation of plant and machinery is not allowed. (Refer advance ruling pronounced by AAR ANDHRA PRADESH in matter of M/S. MARUTI ISPAT AND ENERGY PRIVATE LIMITED dated 09.10.2018)