ITC is eligible on input used for construction of foundation of machinery

Last updated: 31 August 2023
Quick Summary
The Rajasthan Authority for Advance Ruling (AAR) has ruled that Input Tax Credit (ITC) is eligible for GST paid on inward supplies used for constructing the foundation and structural support of plant and machinery. This applies when the machinery is fixed to the earth and used for making outward taxable supplies of goods or services. The ruling clarifies that such foundations and structural supports are considered part of the 'plant and machinery' itself.

Court :
AAR, Rajasthan

Brief :
The AAR, Rajasthan, in M/s. Uvee Glass Private Limited [Advance Ruling No: RAJ/AAR/2023-24/05 dated June 30, 2023] held that, Input Tax Credit ("ITC") of GST paid on the inward supply for fixing of plant and machinery to earth by foundation or structural support which is used for making outward supply of taxable goods is allowed.

Citation :
Advance Ruling No: RAJ/AAR/2023-24/05 dated June 30, 2023

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Bimal Jain
Published in GST
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