REGARDING INPUT OF AC

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This query is : Resolved

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This discussion clarifies whether businesses selling sunglasses can claim Input Tax Credit (ITC) on air conditioners purchased for office use. While generally ITC is claimable for business use, a key point is that ACs attached to immovable property might face restrictions. However, if the AC is considered plant and machinery (and not part of the building cost), ITC can likely be claimed under GST regulations.

ABHI KUMAR

ABHI KUMAR (Querist)

28 September 2023 OUR MAIN BUSINESS IS SELLING SUN GLASSES

WE PURCHASED AC FOR OFFICE USE
CAN WE CLAIM ITC

CA Shyam Agrawal

CA Shyam Agrawal (Expert)

28 September 2023 Yes ITC can be claimed

ABHI KUMAR

ABHI KUMAR (Querist)

28 September 2023 KINDLY EXPLAIN SIR I HAVE ONE MORE CONFUSION AC ATTACH WITH IMMOVABLE PROPERTY,,, THEN WE CAN CLAIM ITC SIR

CA Shyam Agrawal

CA Shyam Agrawal (Expert)

28 September 2023 ITC IN CASE OF IMMOVABLE PROPERTY CAN NOT BE CLAIMED

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

28 September 2023 I see this as an unfair treatment here although air conditioners are attached to the walls, they can be removed and fitted elsewhere. It is not immovable property. For example A centralised AC system is considered a plant and machinery and not immovable property, and thus restrictions u/s 17(5) should not apply. However, it should be ensured that the cost of the air conditioner should be separately booked as plant and machinery and not included in the building cost.

Under GST, every registered person should be eligible to claim ITC on purchase of goods/services intended to be used in the course of furtherance of business

ABHI KUMAR

ABHI KUMAR (Querist)

28 September 2023 THANKS ASHA KANTA SIR

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