I understand I can avail Input tax credit on the purchase of plant and machinery. Can you tell me w…
I understand I can avail Input tax credit on the purchase of plant and machinery. Can you tell me which purchases are not to be termed as purchase of plant and machinery?
Chiranjibi Jun. 21, 2018
To be precise, here is what the CGST Act has defined Plant and machinery:
“Plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes—
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.
