A client has installed an electric transformer which supplies direct electricity from power station to its factory. For said purpose, it has erected Cement poles, electrical wring as well as hired contractor who has fitted the entire setup with his labour as well as materials.
Whether ITC on the same is allowed or blocked u/s 17(5)?
Debate on Input Tax Credit Eligibility for Electric Transformers Under GST Section 17(5) Sparks Varied Opinions A client installed an electric transformer to supply electricity to its factory, involving cement poles, electrical wiring, and contractor services. The query was whether Input Tax Credit (ITC) is permissible under GST section 17(5). Responses varied: some argued the transformer is not part of a building and thus ITC is not blocked, while others emphasized its role in business operations, suggesting ITC should be available. References to legal precedents and the definition of 'plant and machinery' were discussed, indicating the issue's complexity and potential for contention. (AI Summary)
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