ITC on new Solar Panel purchased

[gvenugopal g]

Dear Experts,

Warm Greetings!

Entire spinning mills already given for rent containing Machines (spindles) and land & building and we raises GST Tax invoices every month for the "rent for building (HSN # 997212)" and "rent for Machines (HSN # 997314)".

Solar Panel purchased and installed in October-2021 for generation of solar power used by the Tenant, we have increased the "rent for machines" from the month of October-2021. And we have amended existing rental agreement effecting new machines (solar panel) and increase in rental value accordingly.

Can we take the ITC, which was paid on both purchase of Solar Panel Assembly and installation charges? Kindly suggest.

Thanks & Regards: G VENUGOPAL

AI Summary

Input tax credit on solar panels is claimable when panels qualify as plant and machinery used for taxable services.
ITC on procurement and installation of solar panels is claimable where the panels constitute plant and machinery used in providing taxable services; capitalization in the books does not affect eligibility. The immovable property exclusion does not bar credit for plant and machinery, so a solar installation used for taxable supplies remains eligible for input tax credit.