ITC Denied on Construction of VCV Tower for EHV Cable Manufacturing: Gujarat AAAR Ruling:

The Gujarat AAAR ruled that ITC is not available on inputs and services used for constructing a VCV tower under Section 17(5) of the CGST Act.

Input Tax Credit Not Allowed On Civil Works For VCV Line Setup

Saloni Kumari

Aug 26, 2025

Last update on Aug 26, 2025

ITC Denied on Construction of VCV Tower for EHV Cable Manufacturing: Gujarat AAAR Ruling The present advance ruling (No. GUJ/GAAAR/APPEAL/2025/14) dated July 31, 2025, has been filed by a company named M/s. KEI Industries Limited (Applicant) under Section 100 of the CGST Act, 2017 and the GGST Act, 2017, against the Advance Ruling No. GU)/GAAR/R/2025/06, dated 21.03.2025. The applicant is involved in the manufacture and supply of extra high voltage [EHV], medium voltage [MV] and low voltage [LV] cables upto 400 KV. Currently, the company is involved in the manufacture of EHV cable using the continuous catenary vulcanisation [CCV] process. But the company has collaborated with another company named M/s. Brugg Kabel AG, which is a Swiss company, plans to upgrade its technology to manufacture EHV cables upto 400 KV by setting up a new manufacturing plant in Gujarat for manufacturing HV/EHV cables using the vertical continuous vulcanisation [VCV] process. Questions Asked by Appellant: The appellant, M/s. KEI Industries Limited has asked the following question, seeking the Gujarat Advance Ruling No. GUJ/GAAAR/APPEAL/2025/14, dated July 31, 2025: "Question 1: Whether the applicant is eligible to avail ITC on inputs and input services used for the construction of concrete tower to support and erect the VCV lines at the factory of the applicant, for the manufacture of EHV cables, in terms of Section 17(5)(c) and (d) of the CGST Act, 2017." What Did Ruling Say? In accordance with the Gujarat Appellate Authority for Advance Ruling Goods and Services Tax D/5, Rajya Kar Bhavan, Ashram Road, Ahmedabad - 380009, the following answer has been given to the above question: Answer 1: No, the applicant is not 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.

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Saloni Kumari

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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].