Captive Consumption

[umeshkumar jhawar]

Dear Experts

1. What will be tratment for ITC availed on manufactring of Finished Goods used for Captive Consumption for Factory Building Construction.

2. What will be tratment for ITC availed on manufactring of Finished Goods used for Captive Consumption for Plant & Machinery Installation

3. Whether we should raise self Invoice mentioning Basic Amount of Finished Goods?

AI Summary

Debate on ITC Treatment for Captive Consumption in Factory Construction and Machinery Installation under Section 17(5) CGST Act. The discussion revolves around the treatment of Input Tax Credit (ITC) under the Goods and Services Tax (GST) for finished goods used in captive consumption for factory building construction and plant machinery installation. Experts debated whether such transactions constitute 'supply' under GST, requiring self-invoicing and tax payment. One view suggests that self-supply is taxable, necessitating self-invoicing, while another argues that captive consumption does not qualify as supply under GST, thus no invoice or GST payment is required. The conversation also touches on accounting practices and ITC eligibility under Section 17(5) of the CGST Act.