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2018 (11) TMI 448 - AAR - GSTInput tax credit - Goods which are used for installation (Foundation) of plant and machinery - input services which are used for installation (Foundation) of plant and machinery - goods which are used for protection (by creating sheds) for plant and machinery - services which are used for protection (by creating shed) for plant and machinery - Held that - The argument of the applicant to treat civil structures as structural support for plant and machinery is not tenable. The civil structures under consideration is squarely falls other civil structures which is excluded as per the explanation to the proviso as stated above. Hence, this authority is of the opinion the claim of the applicant is not justifiable. Ruling - As per the material on record and photographic evidences of the applicant, on which sought for clarification does not fall under the ambit of explanation to the proviso to the Section 17(5) of CGST/APGST Act,2017. The applicant is not entitled to claim the input tax credit on the goods and services.
Issues Involved:
1. Eligibility for GST input on goods used for installation of plant and machinery 2. Eligibility for GST input services used for installation of plant and machinery 3. Eligibility for GST input on goods used for protection (creating sheds) for plant and machinery 4. Eligibility for GST inputs on services used for protection (creating shed) for plant and machinery Analysis: Issue 1: Eligibility for GST input on goods used for installation of plant and machinery The applicant sought clarification on whether they are eligible for GST input on goods used for the installation of plant and machinery. The applicant argued that the items related to plant and machinery do not have any restriction under Section 17(5)(c) and Section 17(5)(d) of the CGST Act, 2017. They claimed that the digging process for creating foundations is specific to the installation of plant and machinery, and the creation of sheds is necessary for protecting the plant and machinery. The authority requested photographic evidence to support the claim, which was submitted by the applicant. However, after reviewing the evidence and submissions, the authority concluded that civil structures do not qualify as structural support for plant and machinery under the statutory provisions. Therefore, the applicant's claim for GST input on goods used for installation was deemed not justifiable. Issue 2: Eligibility for GST input services used for installation of plant and machinery The applicant also sought clarification on the eligibility for GST input services used for the installation of plant and machinery. The authority's ruling on this issue was aligned with the ruling on the eligibility for GST input on goods. As the civil structures were not considered as structural support for plant and machinery, the applicant was not entitled to claim input tax credit on the services used for installation purposes. Issue 3: Eligibility for GST input on goods used for protection of plant and machinery Regarding the eligibility for GST input on goods used for protection, specifically creating sheds for plant and machinery, the applicant's claim was again denied based on the interpretation that civil structures for protection fall under the category of other civil structures excluded from the definition of plant and machinery. Therefore, the applicant was not entitled to claim input tax credit on such goods. Issue 4: Eligibility for GST inputs on services used for protection of plant and machinery Similarly, the ruling on the eligibility for GST inputs on services used for protection, such as creating sheds for plant and machinery, was consistent with the previous issues. The authority concluded that the applicant's claim for input tax credit on services used for protection purposes was not justifiable based on the exclusion of civil structures from the definition of plant and machinery. In conclusion, the authority ruled that the applicant was not entitled to claim input tax credit on goods and services used for the installation and protection of plant and machinery, as these did not fall within the ambit of the statutory provisions outlined in the CGST/APGST Act, 2017.
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