TaxTMI 
TaxTMI 
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.
ITC ON EFFLUENT TREATMENT PLANT
27 Jun 2020 
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Plant and machinery classification determines ITC eligibility on structural inputs; ETP may qualify if integral to plant and business use.
Availability of ITC on cement and steel for an Effluent Treatment Plant depends on whether the ETP and its civil works qualify as plant and machinery (including foundations and structural supports) used to make outward supplies. If so, inputs forming part of that plant are eligible for ITC; if the civil works constitute separate immovable property or "other civil structures," ITC is excluded. Key operative issues are classification of foundations versus other civil structures, capitalisation, identification of component supplies, and factual predicates that may justify an Advance Ruling. (AI Summary)
Availability of ITC on cement and steel for an Effluent Treatment Plant depends on whether the ETP and its civil works qualify as plant and machinery (including foundations and structural supports) used to make outward supplies. If so, inputs forming part of that plant are eligible for ITC; if the civil works constitute separate immovable property or "other civil structures," ITC is excluded. Key operative issues are classification of foundations versus other civil structures, capitalisation, identification of component supplies, and factual predicates that may justify an Advance Ruling. (AI Summary)