Gujarat AAR Allows ITC on Power Transmission Infrastructure Installed Outside Factory Premises:

Gujarat AAR Allows ITC on Power Transmission Infrastructure Installed Outside Factory Premises The present application (No. Advance Ruling/SGST&CGST/2024/AR/27), dated October 03, 2024, has been filed by a company named M/s. Alleima India Private Limited (applicant) before the Gujarat Authority for Advance Ruling Goods and Services Tax D/5, Rajya Kar Bhavan, Ashram Road, Ahmedabad-380 009. Hearing on this matter took place on July 29, 2025. The applicant is a registered company under the GST Act, having GSTIN no. 24ABBCS6573P1ZQ and is located at Survey No. 2118, Ahmedabad Mehsana Highway, Opp. Kalapi Hotel, Rajpur, Kadi, Mehsana, Gujarat-384440.

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The applicant has its existing plant at Mehsana, Gujarat and Hosar, Tamil Nadu and has recently extended one of the plants at Mehsana, and hence its productivity capacity has increased. As a part of this expansion, the applicant wanted a demand of 4500 KVA at a system voltage of 66 KV for a high tension (HT) power connection at the manufacturing facility. In order to gain the required power supply, the company approached the Gujarat Energy Transmission Corporation (GETCO). To secure this power connection, the company needed to establish a new underground cable line extending 2.7865 km. According to the company's estimation, installation will include 66 KV single-core cables (3+1 configuration) and will leverage 630 mm² aluminium corrugated sheath cables. This installation aims to ensure a reliable power supply from the GETCO substation to the switchyard of the company within the factory locations.

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In the present application, the company has shared two options for the installation of the cable-laying works:

• Execution by GETCO: GETCO may undertake the work directly through its vendors.
• Supervised Installation: The applicant may conduct the work under the supervision of GETCO.

Question Asked by Applicant: Seeking the Gujarat Authority for Advance Ruling (No. GUJ/GAAR/R/2025/44), dated October 16, 2025, the applicant has asked the following question: "Question: Whether the applicant is eligible to avail ITC on procurement of capital goods & related services in the form of wires/cables, electric equipment, supervision charges & installation service used for transmission of electricity from the power station of DISCOM to the factory premises which are installed outside the factory as per the rules & policy of GETCO in accordance with the provision of sections 16 & 17 of the CGST Act, 2017?"

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Answer Given by Uttar Pradesh AAR: The following answer has been given by the Gujarat Authority for Advance Ruling Goods and Services Tax (GST) to the question asked by the applicant: Answer: Yes, the applicant, M/s. Alleima India Private Limited, is eligible to claim Input Tax Credit (ITC) on procurement of capital goods & related services in the form of wires/cables, electric equipment, supervision charges & installation service used for transmission of electricity from the power station of DISCOM to the factory premises which are installed outside the factory as per the rules & policy of GETCO in accordance with the provision of sections 16 and 17 of the CGST Act, 2017.