2026-VIL-03-AAAR
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SGST AAAR

GST – Tamil Nadu AAAR - Eligibility of Input Tax Credit (ITC) on Fire-Fighting System and Public Health Equipment - The Appellant had entered into a contract for design and construction of a new factory, which included procurement of fire-fighting system and public health engineering - The Authority for Advance Ruling (AAR) ruled that the ITC on fire-fighting system and public health engineering is not eligible as they are blocked under Sections 17(5)(c) and 17(5)(d) of the CGST Act, 2017 - Whether the fire-fighting system and public health equipment qualify as 'plant and machinery' under the GST law, thereby making the ITC on such procurements eligible – HELD - Unless the commodity or an installation gets covered under the expression “plant and machinery” as defined in the explanation under Section 17 of the CGST Act, 2017, the input tax credit on the said commodity or installation stands blocked in view of the clauses (c) as well as clause (d) of Section 17(5) of the Act - The fire-fighting system and public health equipment, though movable in nature, get assimilated into the immovable property (the factory building) upon installation and lose their independent identity. Further, these installations are not directly used for making outward supply of goods or services, but rather aid in the overall functioning of the factory, and hence do not qualify as 'plant and machinery' under the GST law. Accordingly, the ITC on the procurements related to fire-fighting system and public health equipment is not eligible under Sections 17(5)(c) and 17(5)(d) of the CGST Acts - The ruling pronounced by the AAR is upheld and the appeal is dismissed
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