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TMI Blog2024 (1) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... stened to the building. Thus, it qualifies as a plant and machinery and is not an immovable property, hence, it is not covered under blocked credit as mentioned in 17(5)(d) of the CGST Act, 2017. Therefore the applicant is eligible for input tax on roof solar plant. The applicant is eligible to avail ITC on roof top solar system with installation commissioning under the CGST/GGST Act - The roof top solar system with installation and commissioning constitute plant and machinery of the applicant and hence is not blocked ITC under section 17(5) of the CGST/GGST Act. - RIDDHESH RAVAL AND AMIT KUMAR MISHRA, MEMBER Present for the Applicant : Shri Kamal Mulchandani and Shri Rohit Mulchandani. Brief facts: M/s Unique Welding Products Pvt. Ltd., Plot No. 701 B, GIDC Estate, Vitthal Udyognagar, Anand, Gujarat 388 121 engaged in the business of manufacturing and sale of welding wires is registered with the department and their registration number is 24AAACU2384G1ZIL 2. The applicant supplies its products services after discharging GST @ 18%. The applicant has entered into an interconnection agreement with power distribution licensee (Madhya Gujarat Vij Company Ltd) for captive use of power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esponds to the purchase of roof top solar plant without GST. Also mentioned in the Note 16 of financial statement is the GST amount ITC on Solar plant under review. This amount will be capitalized subsequently after the advance ruling order. 3. Copy of invoice from roof lop solar plant supplier. 4. Copy of inter connection agreement signed with MGVCL for roof top solar plant. 5. Photographs of roof top solar plant installed which reveals that the solar rooftop plant is bolted to the factory roof by means of screws and bolts for operational efficiency and safety. Further, the roof top solar plant can be dismantled and sold, if required. In other words, the roof top solar plant is not permanently fastened to the building hence it will not be correct to call it the Rooftop solar plant as an immovable property. Further, the rooftop solar plant qualifies as plant and machinery that will be used for furtherance of business of supplying taxable goods. The electricity generated will be solely and captively consumed for the purpose of supplying taxable goods and the roof top solar plant is not an immovable properly, hence, it is not covered under blocked credit as mentioned in 17(5)(d) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the course or furtherance of business: (63) input tax credit means the credit of input tax: Section 16. Eligibility and conditions for taking input tax credit.- (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall he entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless. - (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed : 1 [(aa) the details of the invoice or debit note referred to in clause (a) has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note in the manner specified under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. (3) The value of exempt supply under sub-section (2) shall be such as may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. 1 [Explanation .- For the purposes of this sub-section, the expression value of exempt supply shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule;] (4) ............. (5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18 . input tax credit shall not be available in respect of the following, namely:- 2 [(a)...... (aa) ...... (ab)......... (b)...... (c) works contract services when supplied for construction of an immovable property (other than plant and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid receipt, CEI approved single line diagram, earthing diagram, wiring diagram and installation charging approval received from CEI is attached herewith. The Solar Power Generator (SPG) shall consume electricity generated from the roof top solar PV system at the same premise and the energy set off shall he allowed between 7:00 to 18:00 hrs of the same day ie. The generated solar energy during the day shall be consumed by the consumer during 7:00 to 18:00 hrs of the same day. If consumer is not able to consume all the generated electricity in the same relevant provisions defined in the Gujarat Solar Policy 2021 shall be applicable to surplus energy. The date of meter installation shall be considered as commissioning date of the project. The commercial settlement shall be in effect from the date of commissioning as under: Being HT consumer, 1. In the case of net import of energy by consumer from distribution grid during hilling cycle, the energy consumed from discom shall be hilled as per applicable tariff to respective category of consumers as approved by GERC from time to time. The energy generated by rooftop solar system shall he set off against unit consumed (not against load/d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to time 4. Central Electricity Authority (Installation and Operation of Meters) Regulation 2006. 5. Gujarat Electricity Regulatory Commission (Electricity Supply Code Related Matters) Regulations. 2015. 6. Gujarat Electricity Regulatory Commission Distribution Code, 2004 and amendments thereto, 7. Instruction. Directions and Circulars issued by Chief Electrical Inspector from time to time. 8. CEA (Technical Standards for connectivity of the Distributed Generation) Regulations. 2013 as amended from time to time. 9. Gujarat Electricity Regulatory Commission (Net Metering Rooftop Solar PV Grid Interactive Systems) Regulations. 2016 as amended from time to time. Both the parties hereby agree as follows: I. Eligibility 1.1 Consumer shall own the Solar PV System set up on its own premises or premises in his legal possession. 1.2 Consumer needs to consume electricity in the same premises where Solar PV System is set up. 1.3 Consumer has to meet the standards and conditions as specified in Gujarat Electricity Regulatory Commission Regulations and Central Electricity Authority Regulations and provisions of Government of Gujarat's Solar Power Policy 2021 for being integrated into grid/di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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