ITC ON SOLAR PANEL

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This query is : Resolved

Quick Summary

This discussion clarifies whether businesses can claim Goods and Services Tax (GST) Input Tax Credit (ITC) on solar panels installed at their factory. The consensus is that ITC is generally claimable, even if the power generated is used within the factory for producing goods subject to GST. This is because it's not considered blocked credit under specific GST regulations.

Nishant Gandhi

Nishant Gandhi (Querist)

28 July 2023 Respected Experts

Kindly guide me for the following

Shall we take GST ITC on Solar Panel which is fixed on our factory ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 July 2023 If the power generated from it's used for the factory and GST is applicable on the output of the factory.

Nishant Gandhi

Nishant Gandhi (Querist)

28 July 2023 Sir,
Thanks for your reply.
Further, it's work like home solar panel
so we can get GST ITC.
it's not fall under 17/2 i.e. block credit ?

Nishant Gandhi

Nishant Gandhi (Querist)

28 July 2023 Further, we are manufacturing of Induction Electric Motors which are using in different type of industries like Textile Machinery, Food Processing etc.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

28 July 2023 Yes, ITC can be claimed in such a case.

Nishant Gandhi

Nishant Gandhi (Querist)

29 July 2023 Thanks sir for your valuable advise

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

29 July 2023 You are welcome...
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