ITC AVAILABLE ON FIRE HYDRENT SYSTEM INSTALLED IN FACTORY

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This discussion explores the availability of Input Tax Credit (ITC) on fire hydrant systems installed in factories. While some argue it's available as it furthers business, others point to advance rulings stating it doesn't qualify as plant and machinery. The key is proving the system is essential for business operations. ITC on associated civil and foundation work may also be claimable if essential for the system's functionality, but ITC on puff panels used for the building is generally not available.

Roshan gupta

Roshan gupta (Querist)

29 January 2020 Dear Experts,

Whether ITC available on Fire Hydrant System installed in Factory premises. ?

Gokul Sharma

Gokul Sharma (Expert)

29 January 2020 YES AVAILABLE .........AS ITS FURTHERANCE OF BUSINESS.

Amol S Joglekar

Amol S Joglekar (Expert)

29 January 2020 since it is in furtherance of business, you can avail ITC

Roshan gupta

Roshan gupta (Querist)

29 January 2020 But in many Advance ruling comes against this, they said that this is not fall under Plant and Machinery hence ITC would be not avalable.

For your reference please refer advance rulling : In re Nipro India Corporation Private Limited (GST AAR Maharashtra)

Amol S Joglekar

Amol S Joglekar (Expert)

29 January 2020 AAR is given based on the facts placed before it.
The crucial point in above discussion is "IN FURTHERANCE OF BUSINESS" So long as you are able to convince that the fire hydrant system is installed for the FURTHERANCE of the business, you can avail ITC

Roshan gupta

Roshan gupta (Querist)

29 January 2020 Thanks for reply. Whether ITC on CIVIL work for foundation work in Fire Hydrant System available?

Amol S Joglekar

Amol S Joglekar (Expert)

29 January 2020 You need to prove that without Foundation work, the Fire hydrant system can NOT become functional.

Roshan gupta

Roshan gupta (Querist)

29 January 2020 Thanks for your valuable time.

Amol S Joglekar

Amol S Joglekar (Expert)

29 January 2020 you are most welcome
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