ITC on Electric installation

[GST CMS]

Dear All,

A company is setting up its manufacturing plant where in power supply by way of supplying and installation of various electric cable connection from main station outside factory premises to company sub station is required from state government. State government instructed company that company can itself set up this electric installation from thier nominated vendor but ultimate ownership of such electric installation (Assets) will remain with state government.

Now question is whether company can claim ITC of such electric installation which mainly constist of supplying and installing various electric cables?

Whether ownership of such electric installation will remain with state govenment and not with compnay, will it have any impact on ITC eligibility?

AI Summary

Input tax credit eligibility for installed electrical works hinges on tax invoice, use in taxable business, and supply characterisation.
Whether input tax credit can be claimed for supply and installation of electric cables when the State retains ownership: key operative points are tax invoice in the registered person's name, receipt of the services, and use of inputs in taxable business. Credit proponents say ownership retention by the State does not bar ITC if documentary and use conditions are met, subject to blocked credit restrictions. Opposing analysis notes valuation and supply characterisation issues-if the State's onward supply is exempt or the activity treated as ancillary to an exempt principal supply, ITC may be precluded despite invoices in the company's name.