No ITC on Solar Plant Costs as Electricity Attracts Nil GST: AAAR Rajasthan

In re SBF Ispat Private Limited (GST AAAR Rajasthan) The appeal arose from an order of the Rajasthan Authority for Advance Ruling (AAR), which denied input tax credit (ITC) on inputs, capital goods, and input services used for setting up and operating a solar power plant intended for captive consumption. The appellant, engaged in the manufacture of TMT Bars and MS Billets, proposed to establish a 20.5 MW solar power project in Rajasthan for generating electricity to be used in its manufacturing activities. According to the appellant, the electricity generated by the solar power plant would not...