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.
ITC on Telecommunication Towers Not Allowed Under CGST Act; Towers Not Classified as Capital Goods or Plant Machinery. A query was raised regarding the eligibility of Input Tax Credit (ITC) on telecommunication towers under the Goods and Services Tax (GST). The initial understanding was that ITC could be claimed up to one-third in the first financial year, two-thirds in the second, and the remaining balance in subsequent years, based on the model GST law. However, a response clarified that telecommunication towers are not considered plant and machinery under the CGST Act, thus not qualifying as capital goods. Consequently, since immovable items are not classified as goods, ITC is not applicable to telecommunication towers. (AI Summary)
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