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TMI BlogITC available on GST charged by contractor supplying service of works contract to extent of machine foundationX X X X Extracts X X X X X X X X Extracts X X X X ..... ITC available on GST charged by contractor supplying service of works contract to extent of machine foundation - By: - CA Bimal Jain - Goods and Services Tax - GST - Dated:- 18-12-2021 - - The Hon ble AAR Telangana in the matter of IN RE: M/S. VIJAYNEHA POLYMERS PRIVATE LIMITED [2021 (12) TMI 473 - AUTHORITY FOR ADVANCE RULING, TELANGANA] held that, Input Tax Credit ( ITC ) can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availed on GST charged by contractor supplying service of works contract to extent of machine foundation as per Section 17(5)(c) of the Central Goods and Services Tax Act, 2017 ( CGST Act ). Facts: M/s. Vijayaneha Polymers Pvt. Ltd. ( the Applicant ) has constructed a factory building wherein they have hired works contractors for executing the construction by way of providing mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial where contractor provided construction services or the contractor provided both material and services. Such construction included foundation of machinery, rooms for chillers, boilers, generators and transformers, erecting of electrical poles, laying of internal roads, factory building, internal drainage, laboratory etc., Issue: Whether ITC is available on GST charged by the contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or supplying service of works contract? Held: The Hon ble AAR Telangana in IN RE: M/S. VIJAYNEHA POLYMERS PRIVATE LIMITED [2021 (12) TMI 473 - AUTHORITY FOR ADVANCE RULING, TELANGANA] held as under: Observed that, the Applicant has either purchased goods or services for construction of immovable property on his own account or engaged the works contractor for supply of constru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction services. Analysed Section 17(5) of the CGST Act and opined as under: ITC cannot be availed on works contract services for construction of an immovable property except for erection of plant machinery. ITC can be availed on plant machinery as defined in the explanation to Section 17 i.e., on apparatus, equipment machinery fixed to earth by foundation or structural su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pport; which means plant machinery and machine foundation are eligible for ITC. Plant machinery will not include building or other civil structures and pipelines laid outside factory premises. ITC cannot be availed on goods or services or both received by a taxpayer on his own account for construction of immovable property. Held that, the Applicant would be eligible for ITC to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extent of machine foundation only. (Author can be reached at [email protected] ) - Reply By OmPrakash jain as = Sir, What is meant by the term Other civil structure in reference to Plant machinery. Dated: 19-12-2021 - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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