ITC ON EFFLUENT TREATMENT PLANT

[Vinaykumar Jhawar]

WE ARE CONSTRUCTING EFFLUENT TREATMENT PLANT FOR TREATMENT OF WASTE WATER BEFORE DISCHARGING IT. IT WILL BE TYPICAL CIVIL STRUCTURE WITH SOME MACHINE FITTED IN IT. CAN I CLAIM ITC ON THE STEEL AND CEMENT INVOICES USED FOR THE SAME.

AI Summary

Debate on ITC Claim for Steel and Cement in Effluent Treatment Plant Construction under GST; Section 17(5) CGST Act Referenced. A discussion on a forum revolves around whether Input Tax Credit (ITC) can be claimed on steel and cement used in constructing an effluent treatment plant under the GST framework. Several participants argue that the effluent treatment plant qualifies as 'plant and machinery,' thus making ITC admissible. They reference Section 17(5) of the CGST Act, which excludes 'plant and machinery' from the blocked credit list. However, others caution that civil structures typically do not qualify for ITC unless they are integral to the plant's operation. The discussion suggests seeking an Advance Ruling for clarification, considering potential future disputes with tax authorities.