We can claim ITC against purchases made for forming Wind plant. And that can be utilized at the time of sale of scrap of wind.
We can claim ITC under rule 43
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Capital Goods purchases for wind plant
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Claiming ITC for Wind Plant Purchases - *Input Tax Credit (ITC)*: You can claim ITC on purchases made for forming a wind plant, including goods and services used for construction, installation, and commissioning. -
*Utilization of ITC*: The ITC claimed can be utilized for payment of GST on outward supplies, including the sale of scrap generated from the wind plant.
Rule 43 of CGST Rules - *ITC on Capital Goods: Rule 43 of the CGST Rules provides for claiming ITC on capital goods, including machinery and equipment used for generating electricity, such as wind turbines. -
Conditions for Claiming ITC*: To claim ITC, you need to ensure that the wind plant is used for business purposes, and the ITC is claimed in accordance with the provisions of the CGST Act and Rules. Sale of Scrap - *GST Liability*: When selling scrap generated from the wind plant, you would need to charge GST on the sale value. -
*Utilization of ITC*: You can utilize the ITC claimed on purchases for the wind plant to pay GST on the sale of scrap. Compliance Requirements -
*Proper Documentation*: Ensure proper documentation of purchases, ITC claims, and utilization. - *GST Returns*:
File GST returns accurately, reflecting ITC claims and utilization. -
*Reconciliation*: Reconcile ITC claims with GST liability on sale of scrap [1].
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