{"id":18427,"date":"2024-09-04T13:54:59","date_gmt":"2024-09-04T08:24:59","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=18427"},"modified":"2024-09-04T13:54:59","modified_gmt":"2024-09-04T08:24:59","slug":"gst-input-tax-credit-on-air-conditioner","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/gst-input-tax-credit-on-air-conditioner\/","title":{"rendered":"GST Input Tax Credit on Air Conditioner"},"content":{"rendered":"\n
The Goods and Services Tax (GST) has significantly changed tax management. One of the key features of GST is the Input Tax Credit (ITC) mechanism, which allows eligible businesses to claim credit for the tax paid on inputs in firms.<\/p>\n\n\n\n
When it comes to air conditioners, businesses need to understand the GST Input Tax Credit on air conditioners<\/strong> as it could affect the tax burden.<\/p>\n\n\n\n In this blog, we will discuss the applicable rates of GST and AC HSN Codes, the impact of GST on air conditioners, its applicability and other relevant details.<\/p>\n\n\n\n As per GST regulations, both the supply of air conditioners and their installation are considered taxable. The supplier of air conditioners mostly provides installation services<\/a>. The AC HSN Code in India is 8415 (code) and the applicable GST rate is 28%. Although the GST rate on many electronic appliances has decreased with time, the taxable rate on ACs has remained constant.<\/p>\n\n\n\n Before the implementation of GST, air conditioners were charged at a maximum rate of 27%. GST has led to an increase in the tax rate, and ACs are now taxed at a uniform rate of 28%. Let us take a look at the table below to understand how the prices changed after GST on air conditioners:<\/p>\n\n\n\nGST on Air Conditioners: AC HSN Code and GST Rate<\/strong><\/h2>\n\n\n\n

How Did the Prices Change After GST on Air Conditioners?<\/strong><\/h2>\n\n\n\n
Particulars<\/strong><\/td> Pre-GST Rate<\/strong><\/td> Post-GST Rate<\/strong><\/td><\/tr> Cost of Manufacturing<\/td> \u20b960,000<\/td> \u20b960,000<\/td><\/tr> Excise Duty (12.5%)<\/td> \u20b97,500<\/td> NA<\/td><\/tr> Production Cost<\/td> \u20b967,500<\/td> \u20b960,000<\/td><\/tr> Transportation Cost<\/td> \u20b95,000<\/td> \u20b95,000<\/td><\/tr> Value Addition Costs<\/td> \u20b95,000<\/td> \u20b95,000<\/td><\/tr> Cost of Product<\/td> \u20b988,350<\/td> \u20b989,600<\/td><\/tr> Value Added Tax (14%)\/GST (28%)<\/td> \u20b910,850<\/td> \u20b919,600<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n