ITC Admissible On GST Paid On Inward Supply For Fixing Of Plant And Machinery To Earth By Structural Support: AAR

The Rajasthan Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) The Rajasthan Authority of Advance Ruling (AAR) has held that input tax credit (ITC) is admissible on GST paid on inward supply for fixing plant and machinery to earth by foundation or structural support.

The bench of Umesh Kumar Garg and Mahesh Kumar Gowla has observed the provisions of Sections 16 and 17 of the CGST Act, 2017, and held that the input tax credit of GST paid on the inward supply of structural support of plant and machinery that is used for making outward supply of goods and services is admissible to the extent of the provisions and conditions laid down in Sections 16 and 17 of the CGST Act, 2017.

The applicant wants to start the process of making the glasses toughened, reflective, laminated, secured, low-e, etc. For such purposes, a plant and machinery is intended to be used for the manufacturing of glasses, and for such manufacturing activity, structural support must be provided; otherwise, the machine cannot run.

The applicant sought an advance ruling on the issue of whether ITC is eligible for the GST paid on the inward supply of structural support for the plant and machinery that is used for the outward supply of the goods and services.

Yet another issue raised was whether, as per Notification No. 13/2017-Central Tax, dated June 28, 2017, the 60-day time period provided under Section 56 of the CGST Act, 2017 is for the period from the date of filing the application for refund to the date of credit of the refund amount in the taxpayer's bank account.

The applicant contended that ITC should be eligible for the GST paid on the inward supply of structural support of the plant and machinery that is used for making outward supply of the goods or services as the same is admissible in accordance with Section 16(1) read with Section 17(5)(d) of the CGST Act, 2017 read with the explanations.

The AAR held that the time duration of 60 days furnished under Section 56 of the CGST Act, 2017 would be from the filing date of the GST refund application to the date of credit of the refund amount in the bank account of the assessee, as the authority witnessed.

Applicant’s Name: M/s Uvve Glass Private Limited

Date: 30/06/2023

Click Here To Read The Ruling