Input Tax Credit on Air Conditioning Plant

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Sanchit (Querist)
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12 December 2019 Hello Sir/Mam,

Our company is considering a proposal for taking services of works contract for Centralized Air conditioning for our new office.

Whether GST input would be available on the Works Contract Services?
The vendor would provide material and labour for Centralized Air Conditioning
.
As per Section 17(5) of CGST Act immovable property except plant and machinery is mentioned.

Prompt Response would be appreciated.

CA Suresh Jain

CA Suresh Jain (Expert)
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12 December 2019 As mentioned by your self that the ITC is blocked as per section 17(5)(c) on "Works contract services when supplied for construction of immovable property, other than plant & machinery, except where it is an input service for further supply of works contract". It is clear that the ITC is not blocked on the Plant and Machinery even if it is plant of immovable property. The Central air conditioner is "plant and machinery" consisting of chilling units put outside the wall or on roof or on ground, fans and ducting which are fixed to walls or ceiling. Even if a part of machinery embedded to earth or attached to immovable property, it qualifies for ITC. In view of this Central AC plant is eligible for ITC