Input credit on telecommunication towers - Reg

[CMA VENKATESHAM MUTA]

As per my understanding, ITC is eligible for telecommunications tower subject to some condition :
1) upto 1/3rd of total ITC in the FY in which goods recd
2) upto 2/3rd of total ITC, including credit availed in the first FY, in the succeeding FY
3) balance in, any subsequent FY.

The above is as per model GST law.
What is the latest position, I am not able to understand, kindly guide.

[Himansu Sekhar]

Telecommunication towers are not plant and machinery as per explanation to sub sect. 6 of sec. 17 of cgst act. Capital goods include plant and machinery. Hence these are not capital goods. This clarifies your question. Immovable items are not goods. Defn of goods only include movable items.

AI Summary

Input tax credit on telecommunication towers affected because towers are not treated as capital goods under GST definitions. The reply states telecommunication towers are not plant and machinery per the explanation to subsection (6) of section 17 of the CGST Act; since capital goods include plant and machinery, towers are not capital goods. It further notes immovable items are not goods because the definition of goods covers only movable items, a distinction bearing on ITC treatment.