ITC on ETP
Inhouse effluent treatment plants are set up in chemical factories, paper mills, pharma companies etc. to treat the effluent flowing from the unit to make it safe release into the environment.
Effluent means waste water flowing out from plant. It is harmful to the environment if released untreated.
Effluent treatment plants are constructed in a factory which consist of a civil structure and plant/tank installed in it.
ITC is denied on effluent treatment plants (ETP) as a major part of it consists of civil structure.
In my view, effluent treatment plant is not merely a civil structure but it does the process of treating the effluent into non-hazardous which can be used for other purposes within factory like using in toilets, gardening etc.or dispose it into water body.
So, credit is eligible.
ITC on Incineration service
The incineration process burns and destroys the hazardous material. Chemical products when they exceed their expiry date they are not usable and also cannot be reprocessed. In such a situation the only way out is to destroy them via incinerator.
The incinerator charges GST on their services of safe disposal of hazardous goods (inceneration). ITC is eligible on this service.
Also, the goods destroyed through incineration the ITC on the said goods need to be reversed. It is blocked under section 17(5)(h) of the CGST Act.
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