Input Tax Credit on CCTV camera and fire fighting systems
Video Lecture on Input Tax Credit on CCTV camera & fire fighting system
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We have installed CCTV camera and fire fighting systems in our office premises. The invoices for the material are issued by the supplier in our name. We have appointed a contractor for installation of the same. Are we eligible for ITC of the goods i.e CCTV & installation services or will it fall under Works contract and be ineligible as per section 17(5)(c) of CGST Act 2017
Answer : There are two contracts
- Purchase of CCTV Camera and fire fighting systems
- Installation of CCTV Camera and fire fighting systems
Both are independent contracts and You can get ITC if invoice in your name with your GSTIN and the invoice is uploaded by supplier in his GSTR-1.
It will not be treated as Work Contract Section 2(119) of CGST Act 2017 .
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Relevant Portion of Section 17(5) of CGST Act 2017 :-
Notwithstanding anything contained in sub-section (1) of section 16 and sub- section (1) of section 18, input tax credit shall not be available in respect of the following, namely:—
…
| (c) | works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service; | |
| (d) | goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business. | |
| Explanation.—For the purposes of clauses (c)and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property; |
Section 2(119) of CGST Act 2017 :–
“works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract;