CCTV for a Factory: GST Rate, Input Tax Credit and Depreciation (India, 2026)
As of 14 Oct 2026, GST on CCTV cameras (heading 8525) and NVR/DVR recorders (heading 8521) is 18%: 9% CGST under Schedule II of Notification 9/2025-Central Tax (Rate), from 22 Sep 2025, plus matching state tax. A registered factory can usually claim it back as input tax credit. No depreciation table names CCTV, so the block is the CA's call.
Last checked: 14 Oct 2026
By the Mama Editorial Team. Not tax advice: this page quotes the primary texts so you can brief your CA before the purchase order.
Verified against
- CBIC Notification No. 9/2025-Central Tax (Rate), 17 Sep 2025: Schedule II (9%), in force 22 Sep 2025 (para 2); supersedes 1/2017-CT(R). Notification 1/2026-CT(R) amends only Schedules I and III.
- CBIC Notification No. 9/2025-Integrated Tax (Rate): 18% IGST on Schedule II (inter-state).
- CGST Act, 2017 (CBIC consolidated text, 30 Sep 2020): s.2(119), s.8, s.16, s.17(5).
- Finance Act, 2025 s.124, in force 1 Oct 2025 under CBIC Notification 16/2025-Central Tax, 17 Sep 2025.
- Income-tax Act, 2025 (Act 30 of 2025, Gazette CG-DL-E-22082025-265620), s.1(3) and s.33.
- Income-tax Rules, 2026 (G.S.R. 198(E), 20 Mar 2026; Gazette copy): rule 25 and Appendix I.
- Companies Act, 2013, Schedule II. Checked 14 Oct 2026.
- The Income-tax Act and Rules were read as Gazette copies on non-government mirrors (incometaxindia.gov.in returned HTTP 403, 14 Oct 2026).
GST rates on a factory CCTV bill of materials
Every line below sits in Schedule II of Notification 9/2025-CT(R): 9% CGST plus matching state tax, 18% in total (checked 14 Oct 2026).
| Item on the quote | HSN heading | Entry no. in Schedule II | CGST (%) | Total GST, intra-state (%) |
|---|---|---|---|---|
| IP / analogue cameras ("Closed-circuit television (CCTV)… television cameras") | 8525 | 497 | 9 | 18 |
| NVR / DVR ("Video recording or reproducing apparatus") | 8521 | 493 | 9 | 18 |
| Monitors | 8528 | 500 | 9 | 18 |
| PoE / network switches ("All goods") | 8517 | 490 | 9 | 18 |
| Data cable, co-axial cable | 8544 | 516 | 9 | 18 |
| Storage media (smart cards, solid-state storage) | 8523 | 495 | 9 | 18 |
| Hard disks / computers (where classed as ADP units) | 8471 | 456 | 9 | 18 |
| UPS / power supplies (static converters) | 8504 | 477 | 9 | 18 |
Ask for the HSN code on every line. Installation sold with the cameras as one bundled job is a composite supply, which CGST s.8(a) says "shall be treated as a supply of such principal supply", usually the goods. Labour billed separately is a separate supply of services, with its own line and rate on the invoice.
Input tax credit: when a factory gets the 18% back
CGST s.16(1) allows credit on goods or services "used or intended to be used in the course or furtherance of" business. Section 16(2), in the CBIC consolidated text of 30 Sep 2020, sets four conditions:
- You hold the tax invoice.
- You have received the goods. If cameras arrive in lots, credit comes "upon receipt of the last lot".
- The supplier has paid the tax.
- You have filed your return.
A proviso to s.16(2) adds a payment deadline. If the supplier isn't paid within 180 days of the invoice, the credit is added back to your output tax with interest. It can be re-availed once you pay.
Blocked credits, the real question. Section 17(5) blocks credit in two cases that can catch a camera project:
- (c) works contract services "for construction of an immovable property (other than plant and machinery)";
- (d) goods or services used "for construction of an immovable property (other than plant and machinery) on his own account".
A "works contract" (s.2(119)) is work on immovable property in which goods pass to you. "Plant and machinery" means equipment "fixed to earth by foundation or structural support" for making outward supplies, excluding "land, building or any other civil structures".
The 2025 change. Section 124 of the Finance Act 2025, in force 1 Oct 2025, replaced "plant or machinery" in clause (d) with "plant and machinery" from 1 July 2017, "notwithstanding anything to the contrary contained in any judgment".
| Situation | Credit position (reading of the text) |
|---|---|
| Cameras, NVR and switches bought as goods, wall- or pole-mounted, removable | Normally eligible: goods, not construction. |
| Camera supply plus fitting on one invoice from the supplier | Composite supply of goods. Normally eligible. |
| CCTV wiring buried in a new building, billed inside a civil or turnkey construction contract and capitalised to the building | Risk of a block under s.17(5)(c) or (d). Ask the CA before signing. |
| Repairs to an existing system, expensed | Not "construction". The Explanation counts repairs only "to the extent of capitalisation". |
Don't double-dip. CGST s.16(3): if you claim income-tax depreciation on the GST component, "the input tax credit on the said tax component shall not be allowed". Claim the credit, and depreciate the cost net of GST.
Depreciation: which block, which rate
Income tax. The Income-tax Act, 2025 is in force from 1 Apr 2026 (s.1(3)). Section 33(3) allows a "percentage of its written down value, as may be prescribed"; rule 25 and Appendix I of the Income-tax Rules 2026 prescribe it. Appendix I has no entry for CCTV or surveillance equipment; its only "camera" is a medical SPECT Gamma Camera (checked 14 Oct 2026). That leaves three candidate blocks:
| Candidate block (Appendix I, Part A) | WDV rate (%) | Argument for it |
|---|---|---|
| III(1) Machinery and plant, general | 15 | Default for equipment that has no specific entry. |
| III(5) Computers including computer software | 40 | NVRs and analytics servers can be argued to be computers. Plain cameras are harder to fit here. |
| II Furniture and fittings, incl. electrical fittings (Note 5: "wiring, switches, sockets…") | 10 | Cabling and conduit, if treated as electrical fittings. |
Two rules matter in the year you buy:
- Half rate. Under s.33(4), the deduction is 50% of the rate if the asset is acquired and used for less than 180 days in that tax year.
- Additional 20%. Section 33(8)–(9) gives a manufacturer an extra 20% on new plant or machinery, but not on anything installed "in any office premises" or "in the nature of any office appliances". Under 180 days' use, it is 10% now and 10% next year (s.33(9)(b)). It is excluded for a company taxed at 22% under s.200 (s.205(1)(a)) and under the s.202 regime. Shop-floor cameras arguably qualify; that is the CA's judgement.
Books (Companies Act). Schedule II, Part C also names no CCTV entry (checked 14 Oct 2026). The nearest useful lives are plant and machinery, general, 15 years; electrical installations and equipment, 10 years; office equipment, 5 years; servers and networks, 6 years. Residual value is capped at 5% unless a different value is disclosed and "supported by technical advice". Assets marked NESD (electrical installations, office equipment, computers) get no extra-shift depreciation.
Worked ₹ example (assumptions, not a quote)
Assume a registered manufacturer buys an intra-state system for ₹4,60,000 before GST: ₹3,40,000 of cameras, cable and fitting and ₹1,20,000 of NVR, disks and switches. GST at 18% is ₹82,800, and the full credit is taken. It goes live in June (over 180 days' use). Prices: factory CCTV cost by area.
| Treatment (assumption) | Year-1 depreciation (₹) |
|---|---|
| Whole ₹4,60,000 in plant and machinery at 15% WDV | 69,000 |
| Split: ₹3,40,000 at 15% + ₹1,20,000 (NVR/switches) at 40% | 51,000 + 48,000 = 99,000 |
| Whole at 15%, plus additional 20% if the CA accepts s.33(8) (not under s.200 / s.202) | 69,000 + 92,000 = 1,61,000 |
| Put to use in February (<180 days): whole at 7.5% | 34,500 |
| Credit blocked, so GST capitalised: ₹5,42,800 at 15% | 81,420 (but ₹82,800 of credit is lost) |
| Books: straight line, 15 years, 5% residual | 29,133 per full year |
Losing the credit costs far more than any depreciation gain: settle the invoice structure first. For financing the same purchase, see how to finance a factory camera system.
What tax rules can't tell you
A fully credited, fully depreciated system can still go unwatched. The full cost of a camera-plus-AI system turns more on use than on tax.
Where Mama fits
Mama reads the cameras a factory already owns and sends the owner a short morning note on where machines stood idle and where hours leaked. It watches machines and flows, not named people. To get a camera plan for your floor, Leave an email or phone in the form below.
FAQ
What is the GST rate on CCTV cameras after September 2025? 18% in total: 9% CGST under Schedule II, entry 497 (heading 8525) of Notification 9/2025-CT(R), effective 22 Sep 2025, plus the matching state tax (checked 14 Oct 2026).
Can we claim input tax credit on CCTV installed in our factory? Usually yes, for cameras and recorders bought as goods for business use, if the s.16(2) conditions are met. The risk case is CCTV billed inside a building construction contract (s.17(5)(c)/(d)).
What is the depreciation rate on a CCTV camera under income tax? Appendix I to the Income-tax Rules 2026 has no CCTV entry (checked 14 Oct 2026). The default block for equipment without a specific entry is machinery and plant at 15%; NVRs or servers can be argued into computers at 40%. Agree the block with your CA and keep it consistent.