TaxTMI 
TaxTMI 
Input tax Availability
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....nput tax Availability<br> Query (Issue) Started By: - Bayyareddy DK Dated:- 3-2-2023 Last Reply Date:- 15-2-2023 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Sir, My client is a private limited company operating Hotel business which has restaurant on which paying 5% GST without availing input tax credit. Hotel has also rooms on which GST is collected based on the tariff value & availi....
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....ng input tax proportionately. My client has given contract to construct solar project & sale of electricity is only to Hotel business i.e. own consumption. Can I avail input tax on the Contractor bill and investors purchased for solar module? Can I avail & set off input against the hotel room business?. Please advice Reply By Rajagopalan Ranganathan: The Reply: Sir, Electricity is not chargea....
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....ble to GST. Hence you are not eligible to avail input tax credit in respect of inputs and input services used for generating electricity. Reply By Shilpi Jain: The Reply: Looks like some more clarity required in the query. Is it that the solar plant is installed by the hotel for itself and whatever electricity is generated is for own consumption? If yes, then there is no supply of electricity....
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.... by the Hotel and thereby the credit cannot be restricted by considering it as an exempt supply. The credit relating to the equipment should be eligible to the extent of the room business. Whenever looking at the eligibility of ITC, the end use has to be seen and then decided Reply By Amit Agrawal: The Reply: I agree with Ms. Shilpi Jain Mam! But and as said by her, some more clarity is requir....
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....ed .... For example: Sale / Own consumption cannot be same .... meaning of 'investors purchased for solar module'? etc. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Padmanathan Kollengode: The Reply: I agree with shilpi Ma'am, ITC shall be available if the electricity is captively consumed by the hotel itself.<br....
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