GST Input Credit paid for Manufacturing of Gas Pipeline and CNG /LNG Stations

On the combined reading of Sec 17(5)(c) , 17(5)(d) and explanation following can be concluded:

1. ITC (Input tax Credit) is available on plant and machinery (including the foundation and structural support cost) except on cost of pipeline laid outside the factory premises.

2. So if any pipeline is laid within the factory premises to connect different tanks or machinery then the same will be allowed as ITC.

3. There is restriction of ITC on the cost of pipeline laid outside the factory premises. However there is no restriction on ITC on repairs and maintenance cost incurred for maintaining this pipeline (i.e revenue expenditure)