Home Case Index All Cases GST GST + AAR GST - 2024 (1) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 659 - AUTHORITY FOR ADVANCE RULING, GUJARATInput tax credit - blocking of input tax credit - inputs/capital goods or input services on the purchased rooftop solar system with installation & commissioning - rooftop solar system with installation and commissioning constitute plant and machinery of the applicant which are used in the business of manufacturing welding wires - sections 16 & 17 of the CGST/GGST/IGST Act - HELD THAT:- The roof solar plant, affixed on the root of the building is not embedded to earth. Accordingly it is not an immovable property but a plant and machinery, which is utilized to generate electricity which is further solely and captively used in the manufacture of welding wires. The applicant is engaged in the business of supply of welding wires on payment of GST at the applicable rates. The applicant has further stated that they have capitalized the roof solar plant in their books of accounts. The Roof Solar Plant, as is evident is not permanently fastened to the building. Thus, it qualifies as a plant and machinery and is not an immovable property, hence, it is not covered under blocked credit as mentioned in 17(5)(d) of the CGST Act, 2017. Therefore the applicant is eligible for input tax on roof solar plant. The applicant is eligible to avail ITC on roof top solar system with installation & commissioning under the CGST/GGST Act - The roof top solar system with installation and commissioning constitute plant and machinery of the applicant and hence is not blocked ITC under section 17(5) of the CGST/GGST Act.
|