ITC Eligible on GST paid for Inward Supply for Fixing of Plant and Machinery to Earth by Foundation or Structural Support for Making Outward Supply of Goods [Read Order]

The Rajasthan Bench of the Authority for Advance Ruling (AAR), observed that Input Tax Credit (ITC) is eligible on GST paid for inward supply for fixing of plant and machinery to earth by foundational or structural support for making the outward supply of goods.

The applicant, M/s Uvve Glass Private Limited, has sought advance ruling on whether, ITC is eligible on the GST paid on the inward supply of structural support of the plant and machinery that is used for making outward supply of the goods/service and whether, as per Notification No.13/2017-Central Tax, dated June 28, 2017; time period of 60 days provided under section 56 of the CGST Act, 2017 is for the period from the date of filing application for refund to the date of credit of the refund amount in taxpayer's bank account.

The applicant contended that ITC should be eligible on the GST paid on the inward supply of structural support of the plant and machinery that is used for making outward supply of the goods/services as the same is admissible in accordance with the section 16(1) read with section 17 (5)(d) of the CGST Act, 2017 read with the explanations.

It was further contended that the plant and machinery is intended to be used by the taxpayer for manufacturing of glasses and for such manufacturing activity structural support is must otherwise machine cannot run, therefore, the subject ITC should be eligible.

The applicant also argued that where any claim of refund arises from an order passed by an Adjudicating Authority or Appellate Authority or Appellate Tribunal or court which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order, interest at such rate not exceeding nine per cent. as may be notified by the Government on the recommendations of the Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the date of receipt of application till the date of refund.

A Two-Member Bench of the Authority comprising Umesh Kumar Garg, Member (Central Tax) and Mahesh Kumar Gowla, Member (State Tax) observed that “Input Tax Credit of GST paid on the inward supply for fixing of plant and machinery to earth by foundation or structural support which is used for making outward supply of goods/ services is admissible up to this extent only.”

The Authority further noted that the time period of 60 days provided under Section 56 of the CGST Act, 2017 is from the date of filing of application for refund to the date of credit of the refund amount in taxpayer's bank account.

To Read the full text of the Order CLICK HERE

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