Explain about eligibility of Itc on capital good, service, and goods used for construction(outward service) of foundation of plant and machinery

Reply—As per explanation given in section 17(5) of CGST Act, the expression “plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes-

(i) land, building or any other civil structures;

(ii) telecommunication towers; and

(iii) pipelines laid outside the factory premises.

The civil structures under consideration is squarely falls other civil structures which is excluded as per the explanation to the proviso as stated above. Hence, claim of ITC is not justifiable.

Therefore, taxpayer is not entitled to claim the input tax credit on the goods and services which are used for installation (Foundation) of plant and machinery, (refer advance ruling pronounced by AAR Andhra pradesh in matter of M/s MARUTI ISPAT AND ENERGY PRIVATE LIMITED dated 09.10.2018.