GST AAR: ITC Allowed on Solar Plant Installation on Rooftop:

GST AAR: ITC Allowed on Solar Plant Installation on Rooftop Grand Centre Mall is the legal applicant in this ruling. The applicant is a partnership firm with a registered address, 21/1088/H1, Grand Centre Mall, Fourth Floor, Muvattupuzha, Ernakulam, Kerala 686661. The Grand Centre Mall is involved in offering services such as the renting of immovable property and common area maintenance. These services consist of air conditioning, housekeeping, CCTV surveillance, security, lift and escalator maintenance, utilities, and other business support services. The company issues monthly tax invoices to its licensees under SAC codes 997212, 998599, and 998366. All the services provided by the company are taxed at 18% GST. To provide assistance with these services, the company has installed a 500 KW solar power plant on the rooftop and parking area of the shopping mall. The electricity generated from this solar plant is used only for running the mall’s common facilities, such as lighting, air conditioning, CCTV systems, internet infrastructure, UPS systems, lifts, and escalators. This solar power is used entirely for business purposes.

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The cost of these shared services, including the electricity generated by the solar plant, is recovered from the licensees through monthly invoices for Common Area Maintenance (CAM). In this ruling, any reference to the CGST Act, Rules, or Notifications also applies equally to the corresponding provisions under the KSGST Act, Rules, or Notifications.

Questions Asked by Applicant:

The applicant, Grand Centre Mall, has asked the following question before the Kerala Authority for Advance Ruling Goods and Services Tax Department, Tax Tower, Thiruvananthapuram, seeking the advance ruling No. KER/15/2025. Dated 19.05.2025: "Question: Whether the applicant is eligible to claim ITC as Input/Capital Goods or Input Service on a solar plant purchased with insulation and commissioning in terms of Section 16 and 17 of the CGST Act, 2017."

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What Did the Ruling Say?

In accordance with the Kerala Authority for Advance Ruling Goods and Services Tax Department, Tax Tower, Thiruvananthapuram, the following answer has been given to the above question: Answer: Yes, the applicant is eligible to claim an income tax credit (ITC) as Input/Capital Goods or Input Service on a solar plant purchased with insulation and commissioning in terms of Sections 16 and 17 of the CGST Act, 2017.