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GST – Kerala AAR - Input Tax Credit on Rooftop Solar Plant, Plant and Machinery, Immovable Property - Applicant installed Rooftop solar power plant to exclusively power the common facilities of the mall - Whether the applicant is eligible to claim ITC as Input/Capital Goods or Input Service on the solar plant purchased with installation and commissioning, in terms of Sections 16 and 17 of the CGST Act, 2017 – HELD - The solar power plant, comprising solar panels, inverters, and consumables, is used in the course or furtherance of the applicant's business, as the electricity generated is exclusively used for powering the common facilities within the mall, which are essential for providing the taxable CAM services to the licensees. Therefore, the conditions under Section 16(1) of the CGST Act are satisfied - The solar power plant, being bolted and anchored to the rooftop and parking area, is "fixed to earth by foundation or structural support" and thus qualifies as "plant and machinery" under the Explanation to Section 17(6) of the CGST Act. Consequently, the restrictions under Sections 17(5)(c) and 17(5)(d) of the CGST Act, which disallow ITC on works contract services and goods/services used for the construction of immovable property (other than plant and machinery), are not applicable in the present case - The rooftop solar power plants, when used in the course or furtherance of business and treated as capital goods, are eligible for ITC, subject to the fulfillment of other conditions under Section 16 of the CGST Act – Further, since the solar-generated electricity is not supplied or invoiced separately to the mall's licensees, but is instead used internally and integrally for the provision of taxable CAM services, the provisions of Section 17(2) pertaining to reversal of ITC on exempt supplies are not attracted - The applicant is eligible to claim ITC as input/capital goods or input service on the solar plant purchased with installation and commissioning – Ordered accordingly
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