Goods (like cement) used for construction of foundation/ structural support which is required for erection of solar plant. Whether GST paid on such goods is eligible ITC or it is covered under blocked credit under clause (d) of section 17(5).

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 on purchase of cement for construction of civil structure is not justifiable.

Therefore, taxpayer is not entitled to claim the input tax credit on the goods and services which are used for installation (Foundation) of plant and machinery, (refer advance ruling pronounced by AAR Andhra pradesh in matter of M/s MARUTI ISPAT AND ENERGY PRIVATE LIMITED dated 09.10.2018.