ITC is allowed on rooftop solar system affixed on building roof as it qualifies as plant and machinery

The Gujarat Authority for Advance Ruling ( AAR ) ruled that ITC ( input tax credit ) can be availed on rooftop solar systems with installation and commissioning as solar roof top can be classified under plant and machinery.

Applicant has installed a roof solar plant on its factory roof to generate electricity which will be solely and captively used for manufacture of welding wires within same premise. The said roof solar plant, affixed on roof of building, is not embedded to earth and is not permanently fastened to building. Thus it qualifies as a plant and machinery and is not an immovable property, hence it is not covered under blocked credit u/s 17(5)(d) of CGST Act. Therefore, the applicant is eligible for input tax credit on roof solar plant.

Gujarat Advance Ruling No. GUJ/GAAR/R/2024/01, decided on 05-01-2024 in the case of Unique Welding Products Pvt. Ltd.

The copy of the order is as under:

Reguler SGST & CGST 2023 - 2023

 

From,

Krishnakant Jakhotia

Mobile No :- 9422507911

Email Id :- taxtalknew@gmail.com