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Did Solar Grid Connected System be treated as Capital Goods?

19 January 2019

Did ITC on Solar Grid Connected System installed at business premises(for business use) be allowable as capital goods? Did Solar Grid Connected System be treated as Capital Goods?

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2 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 19 January 2019

If life of solar grid is more than a year and even cost of installation is much higher then yes it may be treated a capital asset and ITC be claimed of same over period of 60 months.

Amit Grover (110 Points)
Replied 23 January 2019

plz explain the logic of "more than a year, cost in rupees, over 60 months" or referred gst section in this concern. i read CBIC Release on 15th dec 2018 that credit of tax paid on capital goods is permitted to be availed in one installment. plz guide