The Hon’ble Gujarat High Court in the case of Niket Bipinbhai Patel held that ITC availed on charges paid to GIDC for sub-division and transfer of leasehold rights in plots cannot be treated as blocked credit u/s 17(5)(d) of the CGST Act and directed unblocking of ITC of ₹98,11,678 lying in the electronic credit ledger.
The Gujarat AAR in the matter of Alleima India Pvt Ltd [Advance Ruling No. GUJ/GAAR/R/2025/44 GST, order dated October 16, 2025] held that input tax credit (ITC) is available on capital goods and related services used for laying underground cables and transmission equipment from the DISCOM substation to the factory premises, even if installed outside the factory premises, subject to the conditions in Section 16 and exceptions in Section 17(5) of the CGST Act.
The Central Board of Indirect Taxes & Customs (CBIC) has notified October 1 as the date for bringing into force amendments in the CGST Act, enacted through the Finance Act 2025.
The Telangana AAAR, in Geekay Wires Ltd., held that Input Tax Credit availed on raw materials and inputs used in the manufacture of finished goods which were later destroyed in a fire must be reversed on the ground that Section 17(5)(h) of the CGST Act bars Input Tax Credit in respect of goods lost or destroyed, and this includes cases where raw materials and inputs were consumed in producing finished goods that are subsequently destroyed.
The AAR, Gujarat in the case of M/s Elixir Industries (P.) Ltd. [Advance Ruling No. Guj/Gaar/R/2024/18 Dated July 02, 2024] ruled that registered person is eligible to avail Input Tax Credit (“ITC”) on capital goods i.e. wires and cables used in installation of electricity line for receiving supply of electricity used as input; whose ownership would be transferred to electricity distributor
The Tamil Nadu AAR, in case of In re., Access Healthcare Services Private Limited ruled that ITC can be availed on the contract staffing services received, subject to the condition specified in section 16(1) the CGST Act. The AAR also confirmed that ITC on contract staffing services is not blocked under Section 17(5) of the CGST Act.
CBIC issued a Circular No. 219/13/2024-GST dated 26.06.2024 to provide Clarification on availability of input tax credit on ducts and manholes used in network of optical fiber cables (OFCs) in terms of section 17(5) of the CGST Act, 2017
