https://www.taxtmi.com/caselaws?id=428745 The AAR Tamil Nadu ruled that the applicant cannot claim input tax credit on solar power panels and related installation services. The applicant procured solar panels to generate electricity, which was supplied to tenants through separate invoices. Since electrical energy is classified as exempted goods under HSN 2706, the solar panels constitute capital goods used exclusively for supplying exempted goods. Under Section 17(2) read with Rule 43(a) of CGST/TNGST Act, input tax credit on capital goods used exclusively for exempted supplies is not eligible. The ruling clarifies that solar panels are considered plant and machinery for GST purposes. en-us Wed, 31 Aug 2022 00:00:00 +0530 Thu, 10 Apr 2025 15:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=428745 The AAR Tamil Nadu ruled that the applicant cannot claim input tax credit on solar power panels and related installation services. The applicant procured solar panels to generate electricity, which was supplied to tenants through separate invoices. Since electrical energy is classified as exempted goods under HSN 2706, the solar panels constitute capital goods used exclusively for supplying exempted goods. Under Section 17(2) read with Rule 43(a) of CGST/TNGST Act, input tax credit on capital goods used exclusively for exempted supplies is not eligible. The ruling clarifies that solar panels are considered plant and machinery for GST purposes. Case-Laws GST Wed, 31 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=428745