Input tax Availability

[Bayyareddy DK]

Sir,

My client is a private limited company operating Hotel business which has restaurant on which paying 5% GST without availing input tax credit. Hotel has also rooms on which GST is collected based on the tariff value & availing input tax proportionately.

My client has given contract to construct solar project & sale of electricity is only to Hotel business i.e. own consumption. Can I avail input tax on the Contractor bill and investors purchased for solar module? Can I avail & set off input against the hotel room business?. Please advice

AI Summary

Input tax credit availability depends on captive consumption of solar-generated electricity; credit limited to proportionate taxable hotel supplies.
Whether input tax credit may be claimed for inputs and input services used to install a solar plant whose electricity is captively consumed by the hotel: if the plant is for the hotel's own consumption and there is no supply of electricity outward, ITC is available, subject to proportionate allocation to the taxable room business on an end-use basis; factual clarity is required to determine final entitlement.