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ITC on Chimney woks for Boiler

Pradeep Kumar Sarangi (Account Executive) (120 Points)

05 April 2023

Dear Expert,

Input Tax Credit are available to the service recipient on RCC Chimney Works for Boiler or it is block on GST u/s 17(5).

pls suggest.

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3 Replies

CA Mayank A Jain (Chartered Accountant in Practice) (1260 Points)
Replied 05 April 2023

Credit on plant and machinery is available provided the same is used in the course or furtherance of business. Chimney could be said to be plant and machinery and hence eligible to credit.

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sabyasachi mukherjee (27117 Points)
Replied 05 April 2023

UT is not under blocked credit

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 06 April 2023

ITC is available provided that Chimney construction is Integral part of Boiler (Machinery).

As per the explanation under Section 17(6) for Plant & Machinery:
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;

So as per the definition it excludes CIVIL STRUCTURES .
Thus can be deny by department on construction of Chimney.