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Solar panel

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Bishal Dutta

101 Points Posted on 04 August 2020

i have purchased solar light @ 5% for goverment supplies after fitting the same i have billed to the department @ 12% under works contract. therefor can i claim input of the solar panels which i have purchased earlier????

Replies (4)

Quick Summary

This discussion explores whether input tax credit (ITC) can be claimed on solar panels purchased at a 5% GST rate for government supplies and then billed at 12% under a works contract. The consensus is that ITC is claimable if the solar panels were used in the course of business and are not restricted under Section 17(5) of the CGST Act, provided standard eligibility criteria like correct invoicing are met. It also briefly touches on the potential for private companies to set up their own solar plants and associated income tax benefits.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 04 August 2020

Yes, you can claim ITC on solar light purchased by you and used for work contract, as it's used or intended to be used in the course or furtherance of his business, and also not restricted under section 17(5) CGST Act.

You can claim credit subject to section 16(2) & (4) of CGST Act like your GSTIN is mentioned on purchase invoice, ect....

Ravi SADhiyan

Practice

4510 Points Posted on 05 August 2020

Originally posted by : Sagar Patel
	Yes, you can claim ITC on solar light purchased by you and used for work contract, as it's used or intended to be used in the course or furtherance of his business, and also not restricted under section 17(5) CGST Act.You can claim credit subject to section 16(2) & (4) of CGST Act like your GSTIN is mentioned on purchase invoice, ect....