Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

ITC ON AC PURCHASED FOR SHOP

Save Share

This query is : Resolved

Quick Summary

You can claim the full Input Tax Credit (ITC) for an air conditioner purchased for your shop, provided you deal in taxable supplies. Unlike some capital assets, the ITC for an AC can be claimed in one go, not over 60 months. Ensure your business activities comply with GST provisions to avoid any ITC reversals.

satish kumar Chauhan

satish kumar Chauhan (Querist)
Follow

24 May 2020 Dear sir
I have purchased a AC for my shop ( Whole sale/ retail cloth merchant).

Can I take the credit of SGST and CGST paid for AC.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

24 May 2020 Yes ITC can be taken over a period of 60 months being capital asset.

CA AMIT JAKHWAL

CA AMIT JAKHWAL (Expert)
Follow

26 May 2020 Dear Querist,

Yes, you can avail the full ITC paid on purchase of capital asset in one go.
No need to claim the ITC in 60 installments.
Just ensure to deal in only taxable supplies, to avoid the reversal of ITC under GST provisions.

Regards,
AJ

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now