Installation of rain water storage pit

[S.C. WADHWA]

Dear Expert,

We are manufacturers of both taxable and exempted food items.

We have installed two pits for rain water storage purpose inside the factory under the requirement of Haryana ground water Act. My query is whether we will get input tax credit full or in proportionate. Pit will be capatalized in the books. Please give your expert opinion.

REGARDS,

WADHWA

AI Summary

Input Tax Credit Denied for Rainwater Storage Pits: Classified as Immovable Property Under GST Rules. A manufacturer of taxable and exempted food items inquired about the eligibility for input tax credit on rainwater storage pits installed under the Haryana Ground Water Act. The pits, capitalized in the company's books, are considered immovable property. An expert responded that input tax credit is likely not available because the pits are classified as immovable property, not as plant or machinery. This classification blocks input tax credit under the GST rules for construction of immovable property, irrespective of legal obligations.