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Ineligible credit

sandeep (Accountant) (111 Points)

05 September 2019

Hi All,

We have purchased the ducting Air Conditioner for the office / factory use. whether we can take ITC of the same or it is blocked ( Ineligible ) Credit.

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5 Replies

DEEPAK (CA) (17 Points)
Replied 05 September 2019

yes you can claim itc.

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Shivam RC (Student) (23683 Points)
Replied 05 September 2019

Yes you can claim ITC. The same is not BLOCKED U/s 17(5) of the CGST Act 2017.

2 Like

Akshay Jain (Tax Consultant) (1024 Points)
Replied 06 September 2019

yes you claime the ITC available on assets that are not blocked us 17(5) of CGST act. so you claime it. on AC

sandeep (Accountant) (111 Points)
Replied 06 September 2019

Some Consultants says that if certain immovable capital asset is capitalized then we will not get credit of the same. Ducting Air Conditioner is a part of that immovable asset. here are the items which included in invoice

Item HSN

Copper Piping 7411

Electrical Panel 8538

Electrical Copper Cabling 8544

G I Perforated Cable Tray 7308

Thermal Insulation 3506

Awaiting for your valuable views.

moulali (student) (735 Points)
Replied 06 September 2019

If u want claim depreciation on ITC amount then you ITC on Capital Asset is not available. So if u have capitalized asset along with ITC means you are going to depreciate the asset over useful life of asset. Hence ITC is not available in this case.