Ineligible ITC

[RAGHAV SHARMA]

ITC on Electrical items(Wires, Bulb, LED,) are claimed. DRC-01 is issued concerning ITC claimed on electrical items. All of these items are capitalized under the furniture head. Electrical items are necessary to carry on the business activities and how it is valid to issue DRC-01 on this matter. Kindly guide.

AI Summary

Debate on ITC Eligibility for Electricals and ACs Under GST: Section 17(5) Clarifications and Rulings Explored. A discussion on the eligibility of Input Tax Credit (ITC) under the Goods and Services Tax (GST) regime focuses on electrical items, air conditioners, and other equipment. The initial query concerns the issuance of DRC-01 for ITC claimed on electrical items capitalized under furniture. Responses clarify that ITC is not permissible if items are capitalized, referencing Section 17(5) of the CGST Act. The debate extends to air conditioners, where differing opinions cite various rulings and interpretations of what constitutes 'plant and machinery' versus 'immovable property.' The discussion also touches on rulings about lifts, solar plants, and other installations, emphasizing the complexity of ITC eligibility based on the nature of the property and its classification.