ITC Eligibility on Construction of Water and Effluent Tanks in Factory

In re Nitta Gelatin India Limited (GST AAR Kerala)

In a significant ruling for manufacturing entities, the Kerala Authority for Advance Ruling (AAR) has determined that Nitta Gelatin India Limited is eligible to claim Input Tax Credit (ITC) on Goods and Services Tax (GST) paid for the construction of a fresh water storage tank and a ‘guard pond’ (effluent storage tank). This decision, which hinges on whether these structures qualify as “plant and machinery” rather than “civil structures,” offers clarity on a long-debated aspect of GST law concern

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