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ITC on Transformer and related Electrical and civil fittings, Goods and Services Tax - GST

Issue Id: - 118305
Dated: 29-12-2022
ITC on Transformer and related Electrical and civil fittings

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A client has installed an electric transformer which supplies direct electricity from power station to its factory. For said purpose, it has erected Cement poles, electrical wring as well as hired contractor who has fitted the entire setup with his labour as well as materials.

Whether ITC on the same is allowed or blocked u/s 17(5)?

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Posts / Replies

Showing Replies 1 to 7 of 7 Records

1 Dated: 30-12-2022
By:- Padmanathan Kollengode

In my opinion, electrical transformer is not part of building and hence, ITC is not blocked under section 17(5). However, it might be highly contentious issue.

2 Dated: 30-12-2022
By:- Alkesh Jani


With regards to query, full facts are required, however, the decision of Hon'ble Gujarat High Court in case of torrent power may be referred. Hope this may help you.


3 Dated: 31-12-2022
By:- Rajagopalan Ranganathan


In my opinion, the electric transformer is part and parcel of the plant since without electricity the plant cannot be put to use. Therefore they are used in the course of or furtherance of business. Hence gst paid on the goods and services is available as credit.

4 Dated: 1-1-2023
By:- Shilpi Jain

If this is given as one contract to a person, i.e. supply of goods + service, this being for a P&M, credit would be eligible.

5 Dated: 2-1-2023
By:- Amit Agrawal

Explanation under Section 17 is worth noting, in the context of the query raised:

"Explanation.–– For the purposes of this Chapter and Chapter VI, the expression “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."

6 Dated: 11-1-2023
By:- Ganeshan Kalyani

Transformer may be called as an apparatus which falls under the definition of 'plant and machinery' and therefore ITC is allowed. Also the civil structure which makes the transformer stand is eligible for ITC.

7 Dated: 17-1-2023

Any Advance Ruling or judicial pronouncement which support ITC is eligible, please share,


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