The Authority of Advance Ruling (AAR) Madhya Pradesh ruled that the Input Tax Credit (ITC) under GST can be claimed on the water slides as it is covered under the terms apparatus, equipment, and machinery.
However, the authority denied the ITC claims on the site development and the swimming pool or wave pool as they are not covered under the meaning of ‘Plant and Equipment’.
The applicant, Atriwal Amusement Park is engaged in the construction of water parks and uses various components and services for the purpose of construction. All such components and services are taxable under Goods and Service Tax (GST).
Firstly, the applicant has sought the advance ruling on the issue of whether it is eligible for ITC on the purchase of water slides, which are made up of strong PVC.
The Authority consisting of its members Manoj Kumar Chobey and Virendra Kumar Jain ruled that the applicant is eligible to avail the ITC on the purchase of water slides, which are made up of strong PVC as it is covered under the terms apparatus, equipment, and machinery.
Secondly, the advance ruling was sought on the issue of whether ITC can be availed on goods and services on area development and preparation of the area on which water slides are erected.
The Authority ruled that ITC cannot be availed on goods and services on area development and preparation of area on which water slides are erected as sit formation services are the part of the land, and the land is excluded from the meaning of ‘Plant and Equipment’.
Lastly, the advance ruling was sought on the issue of whether ITC can be availed on the construction of swimming pools or wave pools.
The Authority ruled that ITC cannot be availed on the construction of swimming pools or wave pools as it is not the support structure or foundation of the plant and is a civil structure. Therefore, excluded from the meaning of ‘Plant and Equipment’.
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