Gujarat AAR Allows ITC on Structural Support for Plant and Machinery

The applicant company, CPL Pharmaceuticals Private Limited, is a pharmaceutical company engaged in the manufacture of Active Pharmaceutical Ingredients (APIs). It established a plant in GIDC Dahej, Gujarat, for manufacturing APIs. The applicant had paid GST on construction services.

The company sought an advance ruling for the following questions:

“Whether the Applicant is eligible to avail ITC on input services used for the construction of foundation and structural support for plant and machinery installed within the factory of the Applicant for manufacture of Active Pharmaceutical Ingredients, in terms of Section 17(5)(c) of the CGST Act, 2017?”

The Gujarat AAR ruled that the company can claim ITC on input services used for the construction of foundation and structural support for plant and machinery installed within the factory for producing Active Pharmaceutical Ingredients, as per Section 17(5)(c) of the CGST Act, 2017.