Clarification on availability of input tax credit on ducts and manholes used in network of optical fiber cables (OFCs) in terms of section 17(5) of the WBGST Act, 2017

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..... ircular No. 219/13/2024-GST) DATED: 08.07.2024 Subject: Clarification on availability of input tax credit on ducts and manholes used in network of optical fiber cables (OFCs) in terms of section 17(5) of the WBGST Act, 2017. Representations have been received from Cellular Operators Association of India (COAI) submitting that input tax credit (ITC) is being denied by some tax authorities on duc .....

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..... her the input tax credit on the ducts and manholes used in network of optical fiber cables (OFCs) for providing telecomm-unication services is barred in terms of clauses (c) and (d) of sub-section (5) of section 17 of the WBGST Act, read with Explanation to section 17 of WBGST Act ? 1. Sub-section (5) to Section 17 of the WBGST Act provides that input tax credit shall not be available, inter alia .....

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..... l supports but excludes land, building or any other civil structures; telecommunication towers; and pipelines laid outside the factory premises. 3. Ducts and manholes are basic components for the optical fiber cable (OFC) network used in providing telecommunication services. The OFC network is generally laid with the use of PVC ducts/sheaths in which OFCs are housed and service/connectivity manh .....

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..... s. 4. Accordingly, it is clarified that availment of input tax credit is not restricted in respect of such ducts and manhole used in network of optical fiber cables (OFCs), either under clause (c) or under clause (d) of sub-section (5) of section 17 of WBGST Act. 3. Difficulty, if any, in the implementation of this Trade Circular may be brought to the notice of the Commissioner. Sd/- (DEVI P .....

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