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ITC for sewage treatment plant

Narayanan S (96 Points)

22 June 2018

We have builted the sewage treatment plant in our factory premises, can we avail Input tax credit.

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S.Narayanan

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6 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 22 June 2018

I think No...

Bcoz, It's under Construction of Immovable property. ITC not available as per sec 17(5) of CGST act...

(You will explain Your query with details like its your own or rented or any other ways. Then you can get exact solution from our CCI Experts 😊👍)

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 22 June 2018

Yes ,... Agree with Raja PM ,
if its rented premises , such expense will be book as Repair & Maintenance & You will get the ITC
But if it is owned, then such expense has to capitalize to Building Account & cannot claim ITC as per section 17(5)

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Narayanan S (96 Points)
Replied 22 June 2018

We have explain the situation of the STP.

a) It is our own premises

b) It is New plant

c) it is in capitalized account

d) We have built separate Works contact for building (Civil work)

e) STP Tank supplied and erected by our supplier with GST invoice,. in the situation, is it eligible ITC ( we require the solution (e) query)

d) Is it under plant and machinery ? If it's plant and machinery we can avail ITC.

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 22 June 2018

Yes ,.. if such tank is used for the waste generated by your Machinery , then Yes it can be include in Machinery & ITC can be avail

Narayanan S (96 Points)
Replied 23 June 2018

Raja P M sir, Please guide to my query For STP plant ITC.

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Venkatanarayana GM (Partner associate at Hiregange & Associates) (1279 Points)
Replied 12 April 2019

Dear Narayana.S

In my view, you should be able to avail input tax credit. Because of the reason that it should be constructed in specific manner and many pumps and lot of other machinery is being put in such construction.

Extract of definition

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.

Advise

Please obtain chartered engineer certificate in this regard to safeguard before revenue authorities.

Venkatanarayana GM

9972047758

venkat6688 @ gmail.com

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