Installation of Rain Water Harvesting

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nstallation of Rain Water Harvesting<br> Query (Issue) Started By: - S.C. WADHWA Dated:- 16-7-2024 Last Reply Date:- 18-7-2024 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>Dear Experts, We have installed two rain water harwesting pits in our factory. This is as per requirement of Haryana Ground water Authority. We are manufacturers of Food items both as taxable and exempted. Now my qu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ery is whether we will get common ITC or full. If Full, please quote us any circular or judgement REGARDS, WADHWA Reply By Shilpi Jain: The Reply: In my view credit should be eligible as a common credit if the pit is used for both taxable and the exempted product. However, department may dispute credit considering it is blocked u/s 17(5)(c)/(d) Though in my view that blocking should not appl....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y. Reply By KASTURI SETHI: The Reply: Common ITC is allowed and NOT full. Rain harvesting pit is covered under &#39;plant&#39; as per Explanation given below sub-section 6 of Section 17 of CGST Act. As per legal dictionary meaning, &#39;for a manufacturer &#39;plant&#39; means &#39;apparatus&#39; also which is used for manufacturing the product. Thus it is covered under &#39;Exclusion clause&#3....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....9; and not hit by Section 17 (5)(d). The department may go for &#39;civil structure&#39; which is out of exclusion clause. Since the burden of proof is cast upon the manufacturer (registered person) under Section 155 of CGST Act, you are to prove that rain harvesting pit is covered under the meaning and scope of &#39;plant&#39;. The Hon&#39;ble Supreme Court has defined, &#39;what is plant&#39;. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....You can take the shelter of that definition to counteract the department&#39;s contention, if such situation arises. You will have to be pro-active.<br> Discussion Forum - Knowledge Sharing ....