ITC Eligibility on Capital Goods for Electricity Line Installation Clarified by AAR Gujarat

By: Admin | September 20, 2024 | Categories: #AdvanceRuling, #GSTUpdates

The AAR, Gujarat, in the case of M/s Elixir Industries (P.) Ltd. [Advance Ruling No. Guj/Gaar/R/2024/18 dated July 02, 2024], ruled that a registered person is eligible to avail Input Tax Credit (ITC) on capital goods such as wires and cables used in the installation of an electricity line, even if ownership is transferred to the electricity distributor. This decision clarifies the application of Section 17 of the CGST Act concerning the eligibility of ITC on capital goods in cases where ownership shifts after installation.

#ITCEligibility #GSTLaw #AdvanceRuling #AARGujarat #InputTaxCredit #CapitalGoods #GSTCompliance #ElectricitySupply