CBIC Circular No. 219/13/2024-GST: Input Tax Credit on OFC Ducts & Manholes Clarified

CBIC Circular No. 219/13/2024-GST: Input Tax Credit on OFC Ducts & Manholes Clarified

CBIC has issued Circular No. 219/13/2024-GST dated June 26, 2024, clarifying the availability of input tax credit (ITC) on ducts and manholes used in the network of optical fiber cables (OFCs) under section 17(5) of the CGST Act, 2017.

The Circular addresses concerns raised by the Cellular Operators Association of India (COAI) regarding the denial of ITC by some tax authorities on ducts and manholes, citing them as immovable property ineligible for credit under section 17(5) of the CGST Act. COAI sought clarity to avoid unnecessary litigation in the telecommunications sector.

Key clarifications provided include:

The Circular aims to ensure uniform interpretation and implementation of GST provisions across field formations and suggests dissemination through appropriate trade notices.

For more details, refer to the Circular here

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