2026-VIL-42-AAR
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SGST Advance Ruling Authority

GST – Maharashtra AAR – Eligibility to Input Tax Credit on construction of the breakwater wall, Works contract services - Sections 16 & 17 of CGST Act, 2017 - The applicant, engaged in the regasification of LNG, constructed a breakwater wall adjacent to the jetty as an integral part of the LNG regasification plant - Whether the applicant is eligible to avail ITC on the goods and services used for the construction of the breakwater wall – HELD - The services provided by the contractor to the applicant is a works contract services under Section 2(119) of the CGST Act, involving supply of both goods and services for construction of a breakwater project - The breakwater wall is an immovable structure which can be broken down and dismantled and the individual components moved from one place to another, but the entire breakwater wall cannot be moved from one place to another and can be considered to be an immovable structure constructed on the sea bed. The breakwater wall is a permanent civil structure and not "plant and machinery" as defined under the Explanation to Section 17(6) of the CGST Act. The definition of "plant and machinery" excludes land, buildings or any other civil structures, and the breakwater wall falls under the category of a civil structure - Further, the breakwater wall is not used for making outward supply of goods or services, as required by the definition of "plant and machinery". Even under Section 17(5)(d), the ITC is blocked for goods or services received for construction of an immovable property (other than plant and machinery) on one's own account. The breakwater wall is an immovable property, and therefore, the ITC is not admissible to the applicant – The applicant is not eligible to avail ITC on the construction of the breakwater wall – Ordered accordingly
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