PwC recommends clarity on GST input tax credit for data centre construction

DATA CENTRES HAVE UNIQUE OPERATIONAL REQUIREMENTS, OPERATE WITH INTEGRATED INFRA, AND ARE PURPOSE-BUILT SO THEY CANNOT BE REPURPOSED FOR ANY OTHER USE, SAID PWC

- AASHISH ARYAN

The government should provide clarity on whether the infrastructure of hyperscale data centres qualifies as “plant and machinery” or civil structures, to help them be eligible for input tax credit (ITC) on construction-related activities, tax advisory firm PwC has recommended.

Data centres have unique operational requirements, operate with integrated infrastructure, and are purpose-built so they cannot be repurposed for any other use, PwC said.