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ITC on Chimney woks for Boiler

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Pradeep Kumar Sarangi

Account Executive

96 Points Posted on 05 April 2023

Dear Expert,

Input Tax Credit are available to the service recipient on RCC Chimney Works for Boiler or it is block on GST u/s 17(5).

pls suggest.

Replies (3)

Quick Summary

This discussion explores the availability of Input Tax Credit (ITC) for chimney works related to boilers under GST. The key question is whether a chimney is considered 'plant and machinery', which is eligible for ITC, or a 'civil structure', which is typically blocked credit. While chimneys can be argued as plant and machinery integral to the boiler, the definition of 'plant and machinery' explicitly excludes civil structures, potentially leading to denial by the tax department.

CA Mayank A Jain

Chartered Accountant in Practice

855 Points Posted on 05 April 2023

Credit on plant and machinery is available provided the same is used in the course or furtherance of business. Chimney could be said to be plant and machinery and hence eligible to credit.

sabyasachi mukherjee

Profession

19978 Points Posted on 05 April 2023

UT is not under blocked credit

Pankaj Rawat

GST Practitioner

29904 Points Posted on 06 April 2023

ITC is available provided that Chimney construction is Integral part of Boiler (Machinery).

As per the explanation under Section 17(6) for Plant & Machinery:
plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes-

(i) land, building or any other CIVIL STRUCTURES;

So as per the definition it excludes CIVIL STRUCTURES .
Thus can be deny by department on construction of Chimney.