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TMI BlogClarification 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 CGST Act, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... inistry of Finance, Government of India, New Delhi. Circular (No. 13/2024-25-GST) The GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India, New Delhi has issued the above referred Circular. For the uniformity in implementation and in exercise of the powers conferred under Section 168 of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017) it is hereby directed that the Said Circular issued by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, Government of India shall be applicable, mutatis mutandis, in implementation of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017). A copy of the above r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to prevent unwarranted litigation in the telecommunication sector across the country. 2. In order to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the CGST Act, hereby clarifies the issue as below. Issue Clarification Whether the input tax credit on the ducts and manholes used in network of optical fiber cables (OFCs) for providing telecommunication services is barred in terms of clauses (c) and (d) of sub-section (5) of Section 17 of the CGST Act, read with Explanation to Section 17 of CGST Act ? 1. Sub-section (5) to Section 17 of the CGST Act provides that input tax credit shall not be available, inter alia, in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aking outward supply of transmission of telecommunication signals from one point to another. Moreover, ducts and manholes used in network of optical fiber cables (OFCs) have not been specifically excluded from the definition of plant and machinery in the Explanation to Section 17 of CGST Act, as they are neither in nature of land, building or civil structures nor are in nature of telecommunication towers or pipelines laid outside the factory premises. 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 CGST Act. 3. It is requested that suitable t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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