Treading GST Path - XIX - ITC on supporting structures

Three possibilities mentioned by the Author needs sound reading and analysis.

Going by the intention extended or changes made based on advocacy from First MGL to Revised MGL my view is that the word “by foundation or structural support that are used for making outward supply” refers to all the items mentioned in plant and machinery explanation and not confined to telecommunication tower alone. In short the intention is to allow ITC of such works contract service for all movable items and for certain immovable items like plant, machinery, equipment, telecommunication tower etc. as referred even if they are fixed in to earth

With regard to the expression ‘used for making outward supply’ this is the side effect of changes made in input, capital goods & input service definition from First MGL to Revised MGL. The limiting said word has been removed in the Revised MGL to “used or intended to be used by a supplier in the course or furtherance of business” in Sec.2. Corresponding amendment is required in exclusion clause of ITC also

govindan_mani govindan_mani 27/02/2017