ITC on a captive solar plant — net metering, off-site, banking: your GST credit position

1Describe the plant

2Read your position

3Print the position note

1The plant

5 answers

Where is the plant?

On your factory, hotel or hospital premises — rooftop or ground Somewhere else in the same State In another State

Same GSTIN or "additional place of business" does not change the answer — the rulings say so.

How is it connected to the grid?

A plant away from your premises always reaches you through the grid — choose how it is connected.

Does your business sell anything GST-exempt?

No — everything we sell is taxable (default) Yes — type the exempt share of our sales

Type the exempt share as a number from 1 to 100 — e.g. 20

A hospital's treatment, for example, is exempt.

Share of the plant's power going to the grid or anyone else, %

From the export meter or the DISCOM bill over a year; 0 if nothing goes out.

Type a share from 0 to 100 — e.g. 15

GST charged on the plant, ₹

Modules, inverters, mounting, batteries and the installation contract — the GST on the bills, not the cost. Split out civil works in the fold.

Type the GST as a number — e.g. 3800000

Everything else — open only what you need

Split the bill: equipment and civil works assumed: no civil works

Of that GST, how much is on civil works, ₹ Confirm with your CA

Default 0. Control room building, boundary wall, roads, land levelling, drainage. Mounting structures and their foundations count as equipment.

If the plant is off your premises the three facts the 2026 ruling looked for

Is a wheeling and banking agreement signed and on record?

Yes No

Follows the connection you chose above, and changes it if you change this.

Are generation and your consumption matched by meter readings each month?

Yes No Not sure (default)

The business and the letterhead for the note

Business name

GSTIN

The plant, in a line

CA firm name

Remembered on this device. “Chartered Accountants” prints under it.

Firm address

Phone / e-mail

FRN

Signatory

Place

Date

Today, by default.

How this works

Why the connection decides it. Electricity is exempt from GST. If power from your plant counts as sold to the DISCOM, the credit on the plant goes with it.

The 2026 rulings. Rajasthan's appellate authority (May 2026) said power injected into the grid with no banking agreement belongs to the DISCOM, and denied all credit; Tamil Nadu had done the same in 2025. A Madras High Court writ is pending. Confirm with your CA

On your premises. Power you use where it is made, with nothing exported, has kept full credit in the rulings. Export a share and you claim it all and reverse that share month by month over five years.

Civil works. Mounting structures and their foundations are equipment. Buildings, boundary walls and roads are blocked.

The power-sector push. The 2026 captive power rules and Chhattisgarh's virtual net metering make off-site plants easier to set up — the very structure the GST rulings punish.

Certainty. An advance ruling in your own State is the only binding answer for your plant.

Your position

Things to check

What would make it safer

The rulings

reported summaries

Forum	Case	Date	What it held	For / against you

Rulings are quoted from reported summaries; an advance ruling binds only the business that asked for it. Confirm with your CA

Want a CA to review the structure before you sign, or to seek an advance ruling? Karan does these. Ask CA Karan Gupta →

Your data never leaves this browser. This page maps your plant's structure to the GST input-tax-credit positions taken in advance rulings and one pending High Court writ (sections 16 and 17 of the CGST Act, Rules 42 and 43). Advance rulings bind only the business that asked for them, and the rulings are quoted from reported summaries. It is not tax advice; for certainty, seek an advance ruling in your State. Statutory rules change; verify against the latest notifications. Rules verified 17 October 2026. Nothing you type is uploaded. Maintained by a practising Chartered Accountant.