ITC availability on MS Columns and stucture

[Yatin Bhopi]

Dear expert

Under Section 17 (5) (d) of CGST Act 2017 Input tax credit of goods and services received by taxable person for construction of immovable property (other than plant or machinery) is not allowed.

We have constructed shed for plant which contains half concrete column and above that MS angles columns and other structure above

My query is;

1. What is meaning of immovable property under GST?
2. Whether Input tax credit will be available on MS angles & other structure?

[Himansu Sekhar]

Explanation.––For the purposes of this Chapter and Chapter VI, the expression “plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes-

(i) land, building or any other civil structures; (ii) telecommunication towers; and (iii) pipelines laid outside the factory premises.

It means if the plant and machinery needs the support of the Angles & other structures, then the ITC is available. But the sheds are not the supporting structure for the apparatus, equipment, and machinery. Hence the ITC is not allowed.

[DR.MARIAPPAN GOVINDARAJAN]

I agree with the views of Shri Himanshu

[Himansu Sekhar]

Thank you sir

[Yatin Bhopi]

Thanks a lot

[Ganeshan Kalyani]

Yes, support structure to plant and machinery is allowed because without support structure the plant cannot be stand erect and therefore cannot function.

AI Summary

Clarification on ITC Eligibility for Structures: Sheds Excluded, Essential Machinery Supports Included Under Section 17(5)(d) CGST Act 2017. A discussion on a GST forum addressed the eligibility for input tax credit (ITC) on materials used in constructing a shed for a plant, specifically focusing on MS angles and other structures. Under Section 17(5)(d) of the CGST Act 2017, ITC is not permitted for goods and services used in constructing immovable property, excluding plant or machinery. It was clarified that ITC is available for structures supporting plant and machinery necessary for their operation, but not for sheds, as they do not directly support machinery. Participants agreed that support structures essential for machinery function qualify for ITC.