ITC on airconditioner

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40 Points Posted on 27 April 2021
Can i avail itc on airconditioner bought for my textile shop?Do I need to treat it as a revenue expenditure? If capitalised, can I
claim depreciation?
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On 27 April 2021 at 18:48 Report
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Quick Summary
Yes, you can generally claim Input Tax Credit (ITC) on air conditioners purchased for your textile shop under GST, provided all conditions are met. It should be treated as a capital expenditure and recorded as an asset. While you can claim depreciation on the air conditioner, remember not to claim depreciation on the GST component for which ITC has been availed.

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CMA
13117 Points Posted on 27 April 2021
Yes, you may avail ITC on aircons under GST. If capitalized, you may claim depreciation too (excluding ITC that is availed).
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On 27 April 2021 at 18:56
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Practice
1361 Points Posted on 27 April 2021
Yes u can if all other conditions are satisfied (like ITC appearing in GSTR-2A etc.). You should treat it as a capital expenditure and claim depreciation thereon.
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On 27 April 2021 at 19:50
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Chartered Accountant
24588 Points Posted on 27 April 2021
Yes you can claim ITC
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On 27 April 2021 at 21:07
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40 Points Posted on 27 April 2021
Thank you all, Poornimaji, Choudharyji and Souravji
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On 27 April 2021 at 22:09
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Chartered Accountant
24588 Points Posted on 27 April 2021
Your welcome
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On 27 April 2021 at 22:53
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Chartered Accountant
5010 Points Posted on 28 April 2021

Yes if you are installing the air conditioner in your shop then you can claim ITC. 

You should treat it as capital expenditure and book as an asset.

Further, since you will be taking ITC on the AC, do not claim depreciation on the GST component. 

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On 28 April 2021 at 08:42
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40 Points Posted on 28 April 2021
Thanks, Puja ji
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On 28 April 2021 at 09:04
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Practice
1361 Points Posted on 28 April 2021
Your Welcome Mr. Iyer
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On 28 April 2021 at 09:52

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