TaxTMI 
TaxTMI 
We are a residential society registered under GST for supplying services to our members. Since monthly contribution is ore than 7500 per month we have been paying GST . Recently, we have installed Park Plus Parking system in our society which helps or facilitates the members to park their cars. Also we have installed CCTV camera in our society premises.
Can we take ITC or parking system & CCTV camera and use against payment of GST on monthly contribution from members.
ITC on CCTV camera
15 Dec 2022 
13 Replies 
11365 Views Asked by
Input tax credit availability for CCTV and parking systems turns on classification as plant and machinery versus works contract.
Eligibility for ITC on CCTV and parking systems depends on whether inward supplies are treated as works contract services for construction of immovable property or as supplies of goods/plant and machinery. If members' contributions are wholly taxable, Section 17(2) and reversals under Rule 42 and Rule 43 generally do not apply and credit is available; if supplies are capitalised, Rule 43 may trigger reversal, whereas non-capitalised items may require Rule 42 proportional reversal. Proper vendor classification and invoicing are advised to avoid denial of credit. (AI Summary)
Eligibility for ITC on CCTV and parking systems depends on whether inward supplies are treated as works contract services for construction of immovable property or as supplies of goods/plant and machinery. If members' contributions are wholly taxable, Section 17(2) and reversals under Rule 42 and Rule 43 generally do not apply and credit is available; if supplies are capitalised, Rule 43 may trigger reversal, whereas non-capitalised items may require Rule 42 proportional reversal. Proper vendor classification and invoicing are advised to avoid denial of credit. (AI Summary)