TaxTMI 
TaxTMI 
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.
ELECTRICAL GOODS ITC
26 Apr 2025 
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Input Tax Credit eligibility for electrical installations affirmed when items constitute plant and machinery and no civil structure is created.
ITC on electrical wires, goods and a transformer for a granite quarry is allowable if those items qualify as plant and machinery rather than parts of a civil structure; installations directly used in extraction/manufacturing are treated as plant and machinery and attract ITC, but the taxpayer must demonstrate with invoices, site photos and technical notes that no immovable civil structure was created and that the equipment is integral to quarry operations. (AI Summary)
ITC on electrical wires, goods and a transformer for a granite quarry is allowable if those items qualify as plant and machinery rather than parts of a civil structure; installations directly used in extraction/manufacturing are treated as plant and machinery and attract ITC, but the taxpayer must demonstrate with invoices, site photos and technical notes that no immovable civil structure was created and that the equipment is integral to quarry operations. (AI Summary)