2026-VIL-105-AAR
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SGST Advance Ruling Authority

GST – Gujarat AAR - Eligibility of Input Tax Credit on inputs and input services used for construction of concrete tower to support and erect the Vertical Continuous Vulcanization (VCV) lines for manufacture of Extra High Voltage (EHV) cables - The applicant is setting up a new manufacturing plant for making EHV cables using the Vertical Continuous Vulcanization (VCV) process. The VCV manufacturing line is required to be supported by a concrete structure in the form of a multi-storied VCV tower. The applicant has procured inputs and input services for the construction of this concrete tower and is seeking eligibility of input tax credit on the same - Whether the applicant is eligible to avail ITC on inputs and input services used for construction of concrete tower to support and erect the VCV lines at the factory of the applicant, for manufacture of EHV cables, in terms of Section 17(5)(c) and (d) of the CGST Act, 2017 – HELD - The concrete structure in the form of VCV tower serves as a critical and essential structural support system to the entire VCV machine line for manufacture of EHV cables while maintaining the structural integrity, stability, precision and overall efficiency. The plant and machinery in terms of the explanation to Section 17 specifically includes foundation and structural support, and the exclusions from plant and machinery are land, building or any other civil structures, telecommunication towers, and pipelines laid outside the factory premises - The CBIC Circular No. 219/13/2024-GST clarified that input tax credit is not restricted in respect of ducts and manholes used in network of optical fiber cables as they are considered as plant and machinery. Similarly, the ITC on inputs and input services used for construction of concrete VCV tower to support and erect the VCV lines cannot be restricted - The applicant is eligible to avail ITC on inputs and input services used for construction of concrete tower to support and erect the VCV lines at the factory of the applicant, for manufacture of EHV cables, in terms of Section 17(5)(c) and (d) of the CGST Act, 2017 – Ordered accordingly
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