Case Law Details
In re Wago private limited (GST AAR Gujarat)
Input tax credit is not admissible on Air-conditioning and Cooling System and Ventilation System, as this is blocked credit falling under Section 17(5)(c) CGST Act. Read AAAR Order: ITC on GST for Plant, Machinery & Installation Services: AAAR Gujarat Ruling
FULL TEXT OF THE ORDER OF AUTHORITY OF ADVANCE RULING,GUJARAT
BRIEF FACTS
The applicant M/s.Wago Private Limited is in the process of establishing their new factory at Vadodara, Gujarat and are procuring various assets to install and commission them in their factory and therefore, the applicant sought Ruling on the admissibility of input tax credit on the same in terms of the provisions of Section 16 and 17 of the CGST Act, 2017. They have submitted the brief description of the assets to be procured along with its main function/usage as follows:
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The author’s thorough analysis and explanation of the relevant GST provisions shed light on a crucial aspect of taxation for businesses. The article effectively breaks down complex concepts into easily understandable terms, making it accessible to a wide range of readers. It is commendable to see such a comprehensive resource that assists business owners in understanding the nuances of tax regulations while also providing clarity on the eligibility of ITC for essential infrastructure like AC and ventilation systems. Overall, this article stands out for its informative content and its ability to simplify a complex topic, empowering entrepreneurs and professionals in the realm of taxation.
thankyou
while denying the ITC on HVAC System treating the same as immovable property, the same authorities classifying the gst applicable on the contract for HVAC as movable and taxable at 28% which is quite absurd