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Regarding ITC

29 November 2020

is ITC available to a works contract company on air conditioners , providing air conditioner benefits to their staff or for their office rooms.

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Shivam RC (Student) (23683 Points)
Replied 29 November 2020

Yes Input Tax Credit ( ITC ) on Air Conditioner ( AC ) can be claimed by the Works Contract Company. There is no such restrictions...

As per the Provision of Section 16(1) of the CGST Act 2017, ITC on Inputs, Input Services and Capital Goods used in the course or furtherance of business can be claimed, subject to blocked credit U/s 17(5) of the CGST Act 2017.

AC is a Capital Goods which is being used for business purpose. Hence you can claim ITC provided all the FOUR Conditions as laid down U/s 16(2) of the CGST Act 2017 has been satisfied...

Regards,
Shivam RC.