Effect of GST on Air Conditioners

 Yes, if the post-supply discount is determined by an agreement known at or before the time of supply, it is specifically linked to the relevant invoice. If the recipient has reversed input tax credit attributable to the discount, the discount is allowed as an admissible deduction under Section 15 of the model GST law.

Suppliers can upload invoices at any time before September of the following fiscal year and pay duty and interest on any missing invoices in their GSTR-3 for the month in which they failed to upload the invoice.

The recipient is entitled to a reduction in his output tax due to the amount by which the provider has corrected the mismatch. The recipient will be repaid the interest paid at the time of reversal by crediting the amount in the corresponding head of his electronic cash ledger.

Yes, the discount is allowed as an admissible deduction under Section 15 of the GST law. If the post-supply discount is established according to an agreement known at or before the time of supply, is specifically linked to the relevant invoice, and the recipient has reversed input tax credit attributable to such discount.

 According to section 17(5)(c) on "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," the ITC is disallowed.

The ITC does not apply to Plant and Machinery, even if they are immovable property plants. The central air conditioner consists of chilling units mounted outside the wall, on the roof, or the ground, and fans and ducting attached to the walls or ceiling.

It qualifies for ITC even if a machinery section is embedded in the ground or attached to immovable property. Because of this, a central air conditioning system qualifies for an ITC.

Yes, Section 34 deals with circumstances like this. When the recipient returns the items, the registered person (provider of goods) may issue a credit note with the necessary information. The provider must record the credit note's details in the returns for the month it was issued, but no later than September after the end of the fiscal year in which it was created or the date of submitting the relevant annual return, whichever comes first.

The credit note's details must match the recipient's corresponding input tax credit claim reduction in their valid return for the same tax period or any subsequent tax period. And the supplier's claim for a reduction in output tax liability that matches the recipient's corresponding reduction in ITC claim must be finally accepted and communicated to both parties.

A composite supply that consists of two or more supplies, has one primary supply based on which the tax is calculated. For instance, in a flower shop, flowers are the primary supply whereas flower ornaments or gardening supplies are secondary. 

Yes, ITC on electronic equipment used in office buildings, such as air conditioners and refrigerators, is permitted.

If the system detects that an ITC is being claimed on the same document more than once (duplication of claim), the amount of the credit will be applied to the recipient's output tax due in return [section 42(6)]. 

The tax will be levied in the state where the supply is made. The supplier will collect the IGST, and the IGST will be credited to the beneficiary.

i. Is it possible to pay GST first and then cancel our GST registration

ii. How do we pay one month's GST if we cancel it first?

 If taxes are owed to the government, a deceased person's lawful successors will be responsible for paying the debts, plus interest. This is addressed in Section 79 of the CGST Act. As a result, it is recommended that dues be paid, returns are completed, and then the registration can be cancelled. You might approach the jurisdictional official and explain the situation, as well as your willingness to settle the deceased's debts. To protect your interests, this should be done via a written letter.

 The composite supply will be considered as if it were a part of the main supply. A mixed supply would be viewed as a supply of the specific items or services subject to the highest tax rate.

A composite supply consists of two or more taxable supplies of commodities or services, or both, or any combination of the two, that are bundled in the natural process and supplied in tandem in the ordinary course of business, with one of them being the major supply. This is a composite supply when a consumer buys a television set and receives a warranty and a maintenance contract with the TV. In this case, the primary supply is television, while warranty and maintenance services are optional.

A mixed supply is a collection of multiple independent supplies of commodities or services, or any combination thereof, made in tandem for a single price that could normally be delivered separately. For instance, a shopkeeper may sell storage water bottles in addition to a refrigerator together in a mixed supply instead of selling them seperately.

Yes, even if there is no consideration involved, the permanent transfer or disposal of business assets when an input tax credit has been claimed on those assets will be considered a supply under GST.

The current GST rate on AC is 28%, and AC HSN codes are 8415, 841583, 841510, 84151010, 84158310, 84158390.