ITC categorisation

[Madhavan iyengar]

if certain installation expenses related to plant and machinery which is yet to be installed is parked in CWIP plant and machinery

The ITC on installation charges will be available but it is required to be shown under which head ie Input services or capital goods since ultimately the installation charges will go and sit in plant and machinery

please clarify

AI Summary

Installation Expenses for Plant and Machinery Under GST: Classified as Services, Not Capital Goods A query was raised regarding the categorization of installation expenses related to plant and machinery under the Goods and Services Tax (GST) framework. Specifically, the question was whether these expenses should be classified as input services or capital goods, given that they will be capitalized in the plant and machinery account. Ganeshan Kalyani clarified that although the installation charges are capitalized, they should be categorized as services because they are not goods. Kasturi Sethi agreed with Kalyani's explanation, endorsing it as the best advice.