ITC on Transformer and related Electrical and civil fittings

[ROHIT GOEL]

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)?

AI Summary

Input tax credit on plant and machinery: transformers and their supports may qualify for ITC if they meet P&M criteria.
Availability of input tax credit on a transformer and its associated poles, wiring and civil fittings turns on whether those items qualify as plant and machinery under the GST explanation-i.e., apparatus fixed to earth by foundation or structural support, with such foundations included-versus being excluded as building or other civil structures; eligibility also depends on factual factors and contractual characterisation and remains a contentious, fact-specific question.