ITC of tax paid on almost every inputs and input services used for taxable supply of taxable goods or services or both is allowed under GST except a small list of items provided u/s. 17(5) of CGST Act.
List given under section is discussed below:
(a) Motor vehicles & Conveyance except when used for
> Further supply of such vehicle or conveyance e.g. for car dealers.
> For transportation of passenger e.g. travels agency, airlines agency etc.
> For imparting training e.g. motor driving schools.
(b) Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where
(c) Membership of club, health & fitness center.
(d) Rent a cab, life insurance and health insurance except where
(e) Travel benefits to employees on vacation such as Leave travel concession or home travel concession e.g. foreign trip provided to employee on leave.
(f) Works contract services for construction of immovable property except when
Inward supply received by a taxable person for the construction of an immovable property (other than plant and machinery) on his own account even when such supplies are used in the course of or furtherance of business.
(h) Inward supplies on which tax has been paid under Composition scheme.
(i) Inward supplies received by Non Resident taxable person except goods imported by him.
(j) Goods or services used for personal consumption.
(k) Goods that are lost, stolen, destroyed, written off, or disposed of by way of free samples or gift.
(l) Tax paid u/s. 74(Fraud), 129(Seize), 130(Confiscation).
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