GST INPUT CREDIT ON EFFULENT TREATMENT FEE

Sir

One of our client paid Effluent Treatment Project development fee to the Effluent Treatment plant (Leather Industry).  The invoice which received with GST @ 18%.  The same was reflected in the GSTR-2A/2B in the respective month.  The client availed the input credit for the same.  The investment was related to furtherance of business.  All members of the Treatment plant was paid the  development fee.    The fee amount utlised by the treatment plant for increase the treatment capacity and develop the infrastructure of the plant.   If the payment not made by the memeber, the treatment plant not permitted to discharge the water.     The officer issued the SCN, the credit was not eligible for input credit, this was under section 17(5).      The officer not accepted the input credit and also our replies issued the order for the year 2021-22.   Please let me know the input were eligible to avail credit.  Any notification or clafification available.   Please clarify

Replies (1)

Sir

Please let me know any notification or clarifications made available in this matter.

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