ITC can be claimed on Water Slides but not on-Site Development and Swimming Pools

The Madhya Pradesh bench of the Authority of Advance Ruling has held that Input Tax Credit can be claimed on the water slides as it is covered under the terms apparatus, equipment, and machinery. The applicant is engaged in the construction of water parks and uses various components and services for the purpose of construction. All such components and services are taxable under Goods and Service Tax. The applicant had approached the Madhya Pradesh AAR to clarify certain concerns including

• Whether ITC can be claimed on the purchase of PVC made water slides
• Whether ITC can be availed on goods and services on area development and preparation of the area on which water slides are erected.
• Whether ITC can be availed on the construction of swimming pools or wave pools.

The Madhya Pradesh AAR ruled that while ITC could be availed on the purchase of PVC made water slides, as it is covered under the terms' apparatus, equipment, and machinery', the same cannot be claimed on goods and services on area development and preparation of area on which water slides are erected as sit formation services are the part of the land, and the land is excluded from the meaning of 'Plant and Equipment'. Similarly, ITC cannot be availed on the construction of swimming pools or wave pools as it is not the support structure or foundation of the plant and is a civil structure. Therefore it is excluded from the meaning of 'Plant and Equipment'.