ITC ON EFFLUENT TREATMENT PLANT, Goods and Services Tax - GST

[Vinaykumar Jhawar]

WE ARE CONSTRUCTING EFFLUENT TREATMENT PLANT FOR TREATMENT OF WASTE WATER BEFORE DISCHARGING IT. IT WILL BE TYPICAL CIVIL STRUCTURE WITH SOME MACHINE FITTED IN IT. CAN I CLAIM ITC ON THE STEEL AND CEMENT INVOICES USED FOR THE SAME.

Posts / Replies

[KASTURI SETHI]

Such comprehensive and crystal clear reply by Sh.Kashish Gupta CA is par excellence and I am sure this reply will force the querist to rethink on opting for AAR. Now the assessees avoid going to AAR, especially keeping in view of some 'unbelievable' and 'unseasonable ' decision by AARs.

[Alkesh Jani]

Dear Experts,

First of all let me thank all the experts for sharing their valuable knowledge. The reason why it was advised to the querist for Advance Ruling is that if ITC is taken and in future department may object the ITC, it would be along with interest and penalty, contesting SCN to higher appellate (as on now no Tribunal is constituted), will be time consuming would be something like ITC+Interest+Penalty (if any)+time+ legal expense, while if opting for Advance Ruling will be Fees+legal expense+ time frame.

If the AAR may deny ITC at this stage, then surely for future and if allowed by AAR free from many time-consuming activities. The decisions given by AAR is without prejudice and based on legality.

Secondly, there will be various supplies including goods and services for setting up effluent plant from various supplier (may be composite supply), therefore, which services are used for foundation or support, is required to be identify. Moreover, the said plant is within the factory or outside is to be decided and as per the assumption of Sh. Roshanji, that the output of the said plant is for supplying goods or services, is to be ascertain. Foundation and structure are definitely immovable property, any civil structure other than foundation or structure support, would be excludes from the definition of “Plant and Machinery”.

I requested for the definition of ‘Plant’ because the termed used is “Plant and Machinery”. As you all experts are aware that in Excise “confiscation and penalty” decisions are available that if no confiscation no penalty can be imposed”.

Once again, I thank all Experts for commenting on my views and sharing their valuable knowledge.

[DR.MARIAPPAN GOVINDARAJAN]

A very elongated discussion among professionals. Healthy situation.

[SHARAD ANADA]

Refer Satyesh Brinechem Pvt. Ltd Gujart AAAR = 2020 (4) TMI 795 - APPELLATE AUTHORITY FOR ADVANCE RULING, GUJARAT

[Vinaykumar Jhawar]

Thank You Sharad Anandji, the AAR decision will help us further.

[Anand Gupta]

Sir,

Please clarify on spiral storage tank used in etp plant, itc permissible or not.