• India CSR Awards 2025
  • India CSR Leadership Summit
  • Guest Posts
Tuesday, October 21, 2025
India CSR
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
        • Festivals
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers
No Result
View All Result
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
        • Festivals
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers
No Result
View All Result
India CSR
No Result
View All Result
India CSR Awards
ADVERTISEMENT
Home Business

Factory Electrical Works Not Eligible for Input Tax Credit, Rules Tamil Nadu Advance Authority

India CSR by India CSR
October 21, 2025
in Business
Reading Time: 3 mins read
gst india

Image Credit: iStock

Share Share Share Share
WhatsApp icon
WhatsApp — Join Us
Instant updates & community
Google News icon
Google News — Follow Us
Get our articles in Google News feed

The main question posed to the Authority for Advance Ruling (AAR) was whether the Input Tax Credit (ITC) is eligible on electrical works carried out for the expansion of the factory for manufacturing activity

CHENNAI (India CSR): In a significant ruling that clarifies the applicability of Input Tax Credit (ITC) on industrial infrastructure, the Authority for Advance Ruling (AAR), Tamil Nadu, has decided that taxes paid on electrical installation work carried out for the expansion of a manufacturing facility are not eligible for ITC.
The ruling, issued as Advance Ruling No. 32/ARA/2025 (dated 18.05.2025), centered on an application filed by M/s. Shibaura Machine India Private Limited.

The Core Issue: Factory Expansion and Electrical Contracts

M/s. Shibaura Machine India Private Limited, engaged in the manufacture of injection moulding machinery and accessories, is expanding its business operations by constructing a new factory adjacent to its existing unit.

The company had entered into a separate contract for the “Supply, installation, testing & commissioning of Electrical Works” for this new factory. This contract included essential infrastructure components like LT Panels, Busducts, Light fixtures, and related electrical installation services, all taxable at 18% GST under SAC 995461.

The crucial question posed to the AAR was whether the ITC on these electrical works, carried out for the factory expansion, could be claimed.

Why ITC Was Denied

The Authority determined that the supply falls under the category of a ‘Works Contract’ service. Furthermore, the execution of this project leads to the creation of an immovable property.

The AAR noted that the entire electrical installation, although involving movable components like LT panels and light fixtures, becomes integrated into the building/infrastructure. It was concluded that the electrical work forms a composite supply that results in the construction of an immovable property, making it ineligible for ITC.

Key Message for Businesses

The Authority ruled that the ITC is specifically blocked under Sections 17(5)(c) and 17(5)(d) of the CGST/TNGST Acts, 2017.

These sections block ITC on:

Works contract services for construction of an immovable property (other than plant and machinery).

Goods or services received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account.

Crucially, the AAR did not consider the electrical installation, which forms part of the factory’s general infrastructure, to fall under the definition of “Plant and Machinery” for the purpose of ITC eligibility.

Secondary Query Answered

The applicant had also sought clarification on the timeline for availing ITC related to advance payments made to the supplier. However, because the main ruling concluded that the Input Tax Credit itself is blocked (negative answer), the second question concerning the timeline for availing ITC on the ‘Advance Component’ invoice does not arise.

This ruling serves as a vital reminder for manufacturers and businesses undertaking expansion projects that careful consideration must be given to how infrastructure installation services are categorized under GST law to determine ITC eligibility.

You Lear

The AAR concluded that the taxes paid under GST on the electrical installation work carried out for the factory expansion are not eligible for availment of Input Tax Credit (ITC) because it is specifically blocked under Sections 17(5)(c) and 17(5)(d) of the CGST/TNGST Acts, 2017

(India CSR)

CSR Leadership Summit
ADVERTISEMENT
India CSR Awards
ADVERTISEMENT
ESG Professional Network
ADVERTISEMENT
India CSR Image 1 India CSR Image 2
Tags: Electrical WorksInput Tax CreditShibaura Machine India Private Limited

CSR, Sustainability, and ESG success stories
India CSR

India CSR

India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

Related Posts

GST: Traders of Sand, Bricks Exempt from Reverse Charge Mechanism on Purchases from Unregistered Suppliers
Business

GST: Traders of Sand, Bricks Exempt from Reverse Charge Mechanism on Purchases from Unregistered Suppliers

4 hours ago
Hindustan Zinc Delivers Highest-Ever 2Q Revenue and EBITDA; PAT Rises 19% QoQ
Business

Hindustan Zinc Posts Record 2Q Revenue of Rs 8,549 Crore; PAT Rises 19% QoQ

4 days ago
Nestlé India
Business

Nestlé to Slash 16,000 Jobs in Cost-Cutting Push: 7 Facts CEOs Must Know

4 days ago
Amitava Mukherjee, CMD, NMDC Steel
Business

NMDC Steel Becomes First in India to Receive BIS License for Hot Rolled Steel for Pipeline Transportation

4 days ago
Solar Module
Business

What is a Solar Module? All You Need To Know

4 days ago
Varun Aditya Thapar, Chairman, Waterbase Limited
Business

Waterbase Limited: Chairman Varun Aditya Thapar Highlights Resilience, Growth, and Innovation in FY 2024–25

5 days ago
Load More
16th CSR Leadership Summit 2025
ADVERTISEMENT
India CSR Awards
ADVERTISEMENT

LATEST NEWS

CSR: Marico and Ambuja Foundation to Create 10 Cr. liters of Water Potential in Gujarat

India’s CSR Spending Hits Record High, But Uneven Distribution and ‘Tick-Box’ Compliance Raise Concerns

GST: Traders of Sand, Bricks Exempt from Reverse Charge Mechanism on Purchases from Unregistered Suppliers

Factory Electrical Works Not Eligible for Input Tax Credit, Rules Tamil Nadu Advance Authority

Trump Administration Agrees to Speed up Student Loan Forgiveness under New Court Deal

Tamil Nadu GST Panel Slaps 12% Tax on Fly Ash Bricks, No Discounts for Eco-Friendly Content

Ad 1 Ad 2 Ad 3
ADVERTISEMENT
ESG Professional Network
ADVERTISEMENT

TOP NEWS

Hardwyn India Spends Rs 20.94 Lakh on Corporate Social Responsibility (CSR) in FY 2025

CSR: Flipkart and Smile Foundation Boost Youth Employability in Cities

Environmental Sustainability: Definition, Meaning, Pillars, Applications and Significance

CSR: IIM Sambalpur Delhi I-Hub Boosts Alumni Startups

Zee 5 Posts 80% Drop in Losses, Records ₹300 Crore Revenue in Q2 FY26

J&K Bank Donates Critical Care Ambulance to SKIMS Under CSR Initiative

Load More
STEM Learning STEM Learning STEM Learning
ADVERTISEMENT

Interviews

Smita Jatia Chairperson RMHC-India. Image: India CSR
Interviews

Smita Jatia Interview: Inside Ronald McDonald House India’s Compassionate CSR

by India CSR
October 14, 2025

How Ronald McDonald House India Is Transforming CSR from Cheque-Writing to Lasting Compassionate Impact.

Read moreDetails
Ankit Mathur, Co-founder and CEO of Greenway Grameen Infra

Empowering Rural Women in India: An Exclusive Interview with Ankit Mathur, Co-founder and CEO of Greenway Grameen Infra

September 22, 2025
Ashish Aggarwal, Chief Administrative Officer and Head of Corporate Responsibility at Cummins India

Driving CSR Impact in India: An Interview with Ashish Aggarwal, Head of Corporate Responsibility, Cummins India

September 18, 2025
Rajani Jalan, Director, CSR & People Relations, mPokket

Driving Impactful CSR at mPokket: An Interview with Rajani Jalan, Director, CSR & People Relations, mPokket

September 16, 2025
Load More
Facebook Twitter Youtube LinkedIn Instagram
India CSR Logo

India CSR is the largest tech-led platform for information on CSR and sustainability in India offering diverse content across multisectoral issues. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting. To enjoy the premium services, we invite you to partner with us.

Follow us on social media:


Dear Valued Reader

India CSR is a free media platform that provides up-to-date information on CSR, Sustainability, ESG, and SDGs. We need reader support to continue delivering honest news. Donations of any amount are appreciated.

Help save India CSR.

Donate Now

Donate at India CSR

  • About India CSR
  • Team
  • India CSR Awards 2025
  • India CSR Leadership Summit
  • Partnership
  • Guest Posts
  • Services
  • ESG Professional Network
  • Content Writing Services
  • Business Information
  • Contact
  • Privacy Policy
  • Terms of Use
  • Donate

Copyright © 2025 - India CSR | All Rights Reserved

No Result
View All Result
  • Home
  • Corporate Social Responsibility
    • Art & Culture
    • CSR Leaders
    • Child Rights
    • Culture
    • Education
    • Gender Equality
    • Around the World
    • Skill Development
    • Safety
    • Covid-19
    • Safe Food For All
  • Sustainability
    • Sustainability Dialogues
    • Sustainability Knowledge Series
    • Plastics
    • Sustainable Development Goals
    • ESG
    • Circular Economy
    • BRSR
  • Corporate Governance
    • Diversity & Inclusion
  • Interviews
  • SDGs
    • No Poverty
    • Zero Hunger
    • Good Health & Well-Being
    • Quality Education
    • Gender Equality
    • Clean Water & Sanitation – SDG 6
    • Affordable & Clean Energy
    • Decent Work & Economic Growth
    • Industry, Innovation & Infrastructure
    • Reduced Inequalities
    • Sustainable Cities & Communities
    • Responsible Consumption & Production
    • Climate Action
    • Life Below Water
    • Life on Land
    • Peace, Justice & Strong Institutions
    • Partnerships for the Goals
  • Articles
  • Events
  • हिंदी
  • More
    • Business
    • Finance
    • Environment
    • Economy
    • Health
    • Around the World
    • Social Sector Leaders
    • Social Entrepreneurship
    • Trending News
      • Important Days
      • Great People
      • Product Review
      • International
      • Sports
      • Entertainment
    • Case Studies
    • Philanthropy
    • Biography
    • Technology
    • Lifestyle
    • Sports
    • Gaming
    • Knowledge
    • Home Improvement
    • Words Power
    • Chief Ministers

Copyright © 2025 - India CSR | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.