ELECTRICAL GOODS ITC

[DURAI RAJ]

One of my client Running business of Granite Quarry during the FY-2020-21 purchased electrical wires and Electrical goods for a granite quarry Transfromation installation for business purposes only. The department has issued a notice under Section 17(5) of the CGST Act, 2017, regarding the claimed Input Tax Credit (ITC) that is deemed ineligible. I need clarification on which ITC is eligible and the relevant sections to support this claim. Please provide guidance on this matter.

AI Summary

Granite Quarry Wins Tax Credit Battle: Electrical Equipment Deemed Essential for Direct Business Operations Under Section 17(5) A business operating a granite quarry purchased electrical goods and wires for transformer installation during fiscal year 2020-21. The tax department issued a notice under Section 17(5) challenging the Input Tax Credit (ITC) claim. Legal analysis suggests the ITC is likely eligible since the electrical equipment qualifies as plant and machinery directly used for business operations, supported by judicial precedents interpreting GST regulations.