ITC available on GST charged by contractor supplying service of works contract to extent of machine foundation

Last updated: 16 December 2021
Quick Summary
The Telangana AAR has ruled that Input Tax Credit (ITC) is available on GST charged by contractors for works contract services, specifically for machine foundations. This ruling clarifies that while ITC is generally blocked for constructing immovable property, it can be claimed for plant and machinery, including the foundations that support them. However, ITC is not applicable to other civil structures or buildings.

Court :
AAR Telangana

Brief :
The Hon'ble AAR Telangana in the matter of M/S. Vijayneha Polymers Pvt. Ltd. [Advance Ruling No. A.R.Com/13/202 TSAAR Order No.29/2021 dated December 9, 2021] held that, Input Tax Credit ("ITC") can be availed on GST charged by contractor supplying service of works contract to extent of machine foundation as per Section 17(5)(c) of the Central Goods and Services Tax Act, 2017 ("CGST Act").

Citation :
Advance Ruling No. A.R.Com/13/202 TSAAR Order No.29/2021 dated December 9, 2021

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Bimal Jain
Published in GST
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