The Government of Uttar Pradesh on July 05, 2024, issued the Clarification on the availability of input tax credit on ducts and manholes used in the network of optical fiber cables (OFCs) in terms of section 17(5) of the UPGST Act, 2017.
The following has been stated namely: -
• For the issue, of whether the input tax credit on the ducts and manholes used in the network of optical fiber cables (OFCs) for providing telecommunication services is barred in terms of clauses (c) and (d) of sub-section (5) of section 17 of the UPGST Act, read with Explanation to section 17 of UPGST Act? the following was clarified namely: -
o Sub-section (5) to Section 17 of the UPGST Act provides that input tax credit shall not be available, inter alia, in respect of the following:
A. Works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service; or
B. Goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business
o Availment of input tax credit is not restricted in respect of such ducts and manhole used in the network of optical fiber cables (OFCs), either under clause (c) or under clause (d) of sub-section (5) of section 17 of UPGST Act.
[Notification No. 2425019]
