GST AAR: ITC Eligible on Tax Paid for Inward Supply for Machinery Fixing

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 towards making the outward supply of goods, Rajasthan Bench of the Authority for Advance Ruling (AAR) witnessed.

The petitioner, M/s Uvve Glass Private Limited, seeks for advance ruling on whether Input tax credit is qualified on the GST filed on the inward supply of structural support of the plant and machinery that is utilized for making outward supply of the goods/service and whether, under Notification No.13/2017-Central Tax, dated June 28, 2017; the time duration of 60 days given 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 petitioner argued, ITC must get qualified on the GST filed on the inward supply of the structural support of the plant and machinery that is utilized to make the outward supply of the goods/services since that would be recognized as per section 16(1) read with section 17 (5)(d) of the CGST Act, 2017 read with the explanations.

It was further argued that the plant and machinery were intended to be employed by the taxpayer for the production of glasses and that as structural support is required for this type of manufacture, the subject Input tax credit should qualify.

The petitioner contended any claim of refund emerged via an order passed via the Adjudicating Authority or Appellate Authority or Appellate Tribunal or court that reached the conclusion and that does not get refunded in 60 days from the receipt date of the application furnished resulting to the same order, interest at the same rate does not more than 9% as Government might notify on the GST councils suggestions would get liable to be paid for these refund from the date just after the lapse of 60 days from the receipt date of application till refund date.

Input Tax Credit of GST filed on the inward supply for fixing of plant and machinery to earth by foundation or structural support which is utilised for making outward supply of goods/ services is permissible up to this extent, as witnessed by the Two-Member Bench of the Authority comprising Umesh Kumar Garg, Member (Central Tax), and Mahesh Kumar Gowla, Member (State Tax).

The time duration of 60 days furnished under Section 56 of the CGST Act, 2017 would be from the filing date of the GST refund application to the date of credit of the refund amount in the bank account of the assessee, authority witnessed.