Master in Accounts & high court Advocate
9610 Points
Posted on 09 March 2025
To determine if you can claim Input Tax Credit (ITC) on solar power while using the business premises, let's break down the key points: Eligibility for ITC: 1. *Business Use*: The solar power system must be used for business purposes. 2. *Tax Invoice*: A valid tax invoice from the supplier is required to claim ITC. 3. *GST Registration*: You must be registered under GST to claim ITC. ITC on Solar Power: 1. *GST Rate*: Solar power systems attract a GST rate of 5% [1]. 2. *ITC Claim*: As a registered business, you can claim ITC on the GST paid for the solar power system. Business Premises Usage: 1. *Business Use Percentage*: If the solar power system is used for both business and non-business purposes, you can claim ITC only on the business use percentage. Conclusion: Yes, you can claim ITC on solar power while using the business premises, provided you meet the eligibility ords of the tax invoice, GST payment, and business use percentage. 2. *Consult a Tax Professional*: Ensure you comply with GST regulations and accurately claim ITC by