ITC can be Availed on Capital Goods used in Transmission of Electricity from Power Station To Factory Premises: AAR

The Authority for Advance Rulings (AAR) has ruled that Input Tax Credit (ITC) on capital goods used for transmitting electricity from a power station to a factory is permissible under GST regulations. This decision clarifies that the ITC can be availed for capital goods involved in the transmission process, which was previously a contentious issue. The ruling underscores the applicability of ITC in cases where capital goods play a direct role in the supply of electricity, enhancing clarity and compliance for businesses in the electricity transmission sector.