ITC ELIGIBLEITY

The construction of a weight bridge within factory premises can be eligible for Input Tax Credit (ITC), but certain conditions apply..

 To qualify for ITC, the weight bridge should be used for business purposes, such as weighing goods or raw materials used in the manufacturing process.

Additionally, the weight bridge should be a permanent fixture, meaning it's fixed to the earth or a foundation, and not a movable asset.

 The GST Act allows ITC on works contract services received for construction of foundation or structural support for apparatus, equipment, and machinery fixed to earth by such foundation or structural support.

w¹ However, this doesn't cover construction of general civil structures, like buildings or walls. In a specific case, the Tamil Nadu Authority for Advance Ruling (AAR) ruled that ITC is not eligible for construction of an integrated factory building, as it's considered a civil structure. However, this ruling might not directly apply to your case, as it depends on the specific circumstances and use of the weight .

A weighbridge is plant and machinery, so ITC is allowed:

• "Plant and machinery" (Explanation to Sec 17(5)) means apparatus, equipment and machinery fixed to earth by foundation or structural support, used for making outward supplies, and includes such foundation and structural supports. It excludes land, buildings and other civil structures.

• A weighbridge (load cells, platform and electronics) installed on a foundation within the factory for weighing inputs or outputs is plant and machinery, including its foundation and pit. ITC on the weighbridge and its foundation is allowed. AARs have allowed it.

• Separate civil works (approach roads, a building for the weighbridge office) are blocked.