Allowability of ITC on Purchase/Installation of Centralised Air Conditioning and Cooling SystemAkhilesh Kumar Sah

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The Tax Publishers GST--Input Tax Credit Allowability of ITC on Purchase/Installation of Centralised Air Conditioning and Cooling System Akhilesh Kumar Sah Claiming of ITC has remained a controversial issue in many items under GST regime. By the elapse of time, the issue is being continuously clarified through rulings and notifications, statutory amendments, etc. The issue of allowability of ITC on Centralised Air conditioning and cooling system has also attracted the controversy in the GST regime. 1. Introduction Section 16 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with eligibility and conditions for taking input tax credit. According to sub-section (1) of section 16, every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. The conditions for taking input tax credit are prescribed under sub-section (2) of section 16. Sub-section (5) of section 17 prescribes the list of goods and services in respect of which a registered person is not eligible for taking input tax credit. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Input Tax Credit

Allowability of ITC on Purchase/Installation of Centralised Air Conditioning and Cooling System

Akhilesh Kumar Sah

Claiming of ITC has remained a controversial issue in many items under GST regime. By the elapse of time, the issue is being continuously clarified through rulings and notifications, statutory amendments, etc. The issue of allowability of ITC on Centralised Air conditioning and cooling system has also attracted the controversy in the GST regime.

1. Introduction

Section 16 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act") deals with eligibility and conditions for taking input tax credit. According to sub-section (1) of section 16, every registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person.

The conditions for taking input tax credit are prescribed under sub-section (2) of section 16.

Sub-section (5) of section 17 prescribes the list of goods and services in respect of which a registered person is not eligible for taking input tax credit.