TaxTMI 
TaxTMI 
TaxTMI 
ITC on Transformer and related Electrical and civil fittings
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....TC on Transformer and related Electrical and civil fittings<br> Query (Issue) Started By: - ROHIT GOEL Dated:- 29-12-2022 Last Reply Date:- 17-1-2023 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>A client has installed an electric transformer which supplies direct electricity from power station to its factory. For said purpose, it has erected Cement poles, electrical wring as well as hir....
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....ed contractor who has fitted the entire setup with his labour as well as materials. Whether ITC on the same is allowed or blocked u/s 17(5)? Reply By Padmanathan Kollengode: The Reply: In my opinion, electrical transformer is not part of building and hence, ITC is not blocked under section 17(5). However, it might be highly contentious issue. Reply By Alkesh Jani: The Reply: Shri With regard....
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....s to query, full facts are required, however, the decision of Hon'ble Gujarat High Court in case of torrent power may be referred. Hope this may help you. Thanks Reply By Rajagopalan Ranganathan: The Reply: Sir, In my opinion, the electric transformer is part and parcel of the plant since without electricity the plant cannot be put to use. Therefore they are used in the course of or furth....
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....erance of business. Hence gst paid on the goods and services is available as credit. Reply By Shilpi Jain: The Reply: If this is given as one contract to a person, i.e. supply of goods + service, this being for a P&M, credit would be eligible. Reply By Amit Agrawal: The Reply: Explanation under Section 17 is worth noting, in the context of the query raised: "Explanation.-- For the purpo....
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....ses of this Chapter and Chapter VI, the expression "plant and machinery" means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes- (i) land, building or any other civil structures; (ii) telecommunication towers; and (iii) p....
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....ipelines laid outside the factory premises." Reply By Ganeshan Kalyani: The Reply: Transformer may be called as an apparatus which falls under the definition of 'plant and machinery' and therefore ITC is allowed. Also the civil structure which makes the transformer stand is eligible for ITC. Reply By DIPANKAR VIG: The Reply: Any Advance Ruling or judicial pronouncement which suppo....
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....rt ITC is eligible, please share,<br> Discussion Forum - Knowledge Sharing ....