TaxTMI 
TaxTMI 
IN MY COLD STORAGE I GIVE RENTING SERVICE TO EXMPTED GOODS. CAN I TAKE ITC ON PLANT AND MACHINARY OR I HAVE TO APPLY RULE 43 OF GST RULE
ITC UNDER GST
01 Jun 2025 
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Input tax credit denial where cold storage services are exempt; service classification determines ITC eligibility.
If a cold storage provider's supply is an exempt supply (e.g., warehousing of agricultural produce), ITC on plant and machinery used exclusively for that exempt supply is not available; Rule 43's apportionment/reversal for capital goods does not apply because there is no mixed taxable use. By contrast, if the activity is characterized as renting of immovable property (taxable), the ITC analysis differs, so service classification and the nature of goods stored are determinative. (AI Summary)
If a cold storage provider's supply is an exempt supply (e.g., warehousing of agricultural produce), ITC on plant and machinery used exclusively for that exempt supply is not available; Rule 43's apportionment/reversal for capital goods does not apply because there is no mixed taxable use. By contrast, if the activity is characterized as renting of immovable property (taxable), the ITC analysis differs, so service classification and the nature of goods stored are determinative. (AI Summary)