TaxTMI 
TaxTMI 
We are manufacturer of Organic chemicals. We have recently installed greenhouse structure falling under HSN 9406 for our effluent treatment plant. expenses will be capitalised under Buildings.
Please let me know whether ITC will be available?
ITC on Greenhouse structure for ETP plant
27 Sep 2019 
4 Replies 
4830 Views Asked by
Input tax credit availability depends on greenhouse being classified as plant, not immovable property, for GST credit.
ITC on a greenhouse for an effluent treatment plant depends on its classification as capital goods: goods capitalised in the claimant's books and used in business qualify for ITC. Section 17(5) excludes capitalised goods used for construction of immovable property except plant and machinery; if the greenhouse is shown to be plant, the exclusion does not apply. Claimants must not capitalise input tax where ITC is claimed and should consider depreciation treatment. A CESTAT Mumbai ruling classifying greenhouse as plant supports this position. (AI Summary)
ITC on a greenhouse for an effluent treatment plant depends on its classification as capital goods: goods capitalised in the claimant's books and used in business qualify for ITC. Section 17(5) excludes capitalised goods used for construction of immovable property except plant and machinery; if the greenhouse is shown to be plant, the exclusion does not apply. Claimants must not capitalise input tax where ITC is claimed and should consider depreciation treatment. A CESTAT Mumbai ruling classifying greenhouse as plant supports this position. (AI Summary)