ITC for Ducts, Manholes in OFCs u/s 17(5)(c) or (d) of GST Act Not Restricted: GST Council

The 53rd GST Council meeting, chaired by Union Finance Minister Nirmala Sitaraman, recommended clarifying that input tax credit (ITC) is not restricted for ducts and manholes used in the network of optical fiber cables (OFCs) under section 17(5)(c) or (d) of the CGST Act. This clarification aims to ensure that businesses involved in the telecommunications sector, particularly in the installation and maintenance of OFCs, can claim ITC on these essential components. OFCs require supporting infrastructure like ducts and manholes for installation and maintenance, making them integral to the telecommunications infrastructure. \r

Therefore, businesses can claim GST paid on ducts and manholes as part of their ITC, helping reduce tax costs and ensuring smoother compliance with GST laws. The recommendation provides clarity and consistency in the treatment of these items, ensuring that businesses can claim ITC for essential components used in their operations