Rooftop solar installations qualify as plant and machinery, with input tax credit subject to statutory conditions and restrictions.
Case-Laws
GST
Detachable rooftop solar power systems used for a trading business's electricity needs qualify as plant and machinery under the CGST and KGST Acts, including their mounting structures and associated components. Fixing equipment to a rooftop with bolts, screws or structural supports does not make it part of the building or a civil structure. Input tax credit on supplies for erection, installation and commissioning is admissible where the business nexus and statutory conditions are met; rooftop installation alone does not attract the restriction under Section 17(5)(d). Occasional surplus exports under net metering do not by themselves sever the business nexus. Credit remains subject to restrictions, including where depreciation is claimed on the tax component. Surplus electricity taxability and related credit apportionment or reversal require separate examination.
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