Claim GST ITC on Goods/Services While Working for Renewable Power Generation of the REC Scheme: AAR

The Tamil Nadu Authority of Advance Ruling (AAR) directed that on Goods/Services Input Tax Credit can be proportionately claimed used in the installation of Renewable Power Generation Plant comes under the ‘Renewable Energy Certificate (REC) Scheme’.

The petitioner is the owner of Kumaran oil mills said that they are generating electricity via photovoltaic solar panels and selling it to the third party on the basis of agreements. This distribution is made via grids provided by the paid Tamil Nadu Electricity Board.

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“Central Electricity Regulatory Commission (Terms and Conditions for Recognition and Issuance of Renewable Energy Certificate for Renewable Energy Generation) Regulations, 2010” to ease and assist the development of the market of renewable electricity resources.

The official has mentioned that renewable Energy Certificate (REC) will be assigned to the Solar Power Generators (SPG) on the grounds of electricity generated. According to the 4th amendment of the above regulation formed 23rd March 2016, the commission has made SPGs with subject on condition indicating that the generator cannot avail benefit such as concessional/promotional transmission also wheeling charges/banking facility.

The applicant seeks to AAR that whether a proportionate claim on ITC A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India. Read more for provision of goods is applied for generating power for business.

The two judges Manasa Gangotri Kata and Kulinjee Selvaan directed that petitioner who utilises goods and services used in installing the renewable power generation plant under the REC scheme are liable for Proportionate claim of Input Tax Credit as per Section 17(2) of the CGST or TNGST Act read with Rule 42 or Rule 43 of CGST/TNGST Rules 2017.