ITC on repair/ servicing of generator (It is a fixed asset)

[bhimsen gupta]

Can I claim ITC on generator servicing and repairs with comsumables and parts. The generator is a fixed asset with us.

Thanks

[KASTURI SETHI]

If the repair expenses of generator set are not being capitalized in your books of accounts but shown as revenue expenditure, then ITC can be availed. Also go through the decision of AAR:

2019 (31) G.S.T.L. 628 (A.A.R. - GST) = 2019 (10) TMI 570 - AUTHORITY FOR ADVANCE RULING, KARNATAKA IN RE : SHRI KESHAV CEMENT AND INFRA LIMITED

[Venkataprasad Pasupuleti]

There is no restrictions on availment of ITC since the generaror is plant & machinery. Hence, irrespective of the capitalisation, you are eligible for ITC.

[KASTURI SETHI]

Yes. Generator is a part of plant and machinery. I agree with Sh. CAVenkataprasad Pasupuleti.

[PAWAN KUMAR]

Generator is asset in your books of account and eligible capital goods under gst law and also cover under plant and machinery, itc is admissible for servicing and repairing as per my view.

[YAGAY and SUN]

We endorse the views of our experts. Further adding value in respect of adhering with the compliance under Environmental Laws on DG sets installed at you factory premises, it is mandatory to get the Noise and Air Pollution duly checked. The DG set shall be provided with proper exhaust muffler with insertion loss of minimum 25 dB(A).

AI Summary

Input tax credit on generator repairs permitted where generator is plant and machinery, irrespective of capitalization in accounts.
Discussion concludes that ITC can be claimed on servicing and repairs of a generator treated as plant and machinery/capital goods; one view conditions claim on treating the expenses as revenue (not capitalising them), while other views treat availment as permissible irrespective of capitalization, with an advance ruling cited in support. Environmental compliance for generator installations is also noted.