Neeraj Khurana (MBA) (21 Points)
21 December 2022We are paying huge amount of GST on Vendor bills for procurement of material for Installation of Gas Pipelines and other CNG/ LNG stations construction acitivity.
What is the law for getting Input Credit for this amount which we are paying to these Vendors?
Also how we can cross check that Vendors are depositing this money as GST
sabyasachi mukherjee
(27574 Points)
Replied 22 December 2022
Sravan Yelagandula
(Employee)
(87 Points)
Replied 22 December 2022
On the combined reading of Sec 17(5)(c) , 17(5)(d) and explanation following can be concluded:
1. ITC (Input tax Credit) is available on plant and machinery (including the foundation and structural support cost) except on cost of pipeline laid outside the factory premises.
2. So if any pipeline is laid within the factory premises to connect different tanks or machinery then the same will be allowed as ITC.
3. There is restriction of ITC on the cost of pipeline laid outside the factory premises. However there is no restriction on ITC on repairs and maintenance cost incurred for maintaining this pipeline (i.e revenue expenditure)
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