A brief list where input tax credit under GST is not available (Section 17(5))
There are some cases where there is no input available under GST to the applicant and there are some exceptions to this, hence to know more about this please read carefully the whole article.
1. Motor Vehicle and other conveyance / Vessel and Aircraft
a. Blocked Credit
Input tax credit not available on motor vehicle and any other conveyance to transport persons, having seating capacity not more than 13 persons (including the driver) including leasing, renting or hiring thereof.
And also, not available on Vessel and Aircraft including leasing, renting or hiring thereof.
Services of general insurance, servicing, repair & maintenance on such motor vehicle and other conveyance or Vessel and Aircraft.
b. Exception (means ITC available on the followings)
When Such Motor Vehicle and other conveyance or Vessel and Aircraft used for
i. Further supply
ii. Transportation of passengers
iii. Imparting training on driving of such motor vehicle
iv. Imparting training on navigating / flying such vessels or aircraft
v. Transportation of Goods
ITC would further be admissible for leasing, renting or hiring of motor vehicles when such motor vehicles are used for above said purposes or where the recipient is engaged in the manufacture of such motor vehicles or Vessels / Aircrafts or in the supply of general insurance services in respect of such motor vehicles or Vessels / Aircraft insured by him.
2. Supply of Food & beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery.
a. Blocked credit
Generally, no ITC available
b. Exception (means ITC available on the followings)
ITC would be available when inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply
ITC would be admissible where it is obligatory for an employer to provide such supplies to its employees under any law for the time being in force.
3. Memberships of club, health and fitness center
a. Blocked credit
No ITC available
4. Rent a cab, life insurance and health insurance
a. Blocked credit
Generally, no ITC available
b. Exception (means ITC available on the followings)
The Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or
such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply.
5. Travel benefits extended to employees on vacation such as leave or home travel concession
a. Blocked credit
No ITC available
6. Works contract services when supplied for construction of an immovable property (other than plant and machinery)
a. Blocked credit
Generally, No ITC available
b. Exception (means ITC available on the followings)
Where it is an input service for further supply of works contract service.
7. 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
a. Blocked credit
No ITC available
8. Goods or services or both on which tax has been paid under section 10 i.e. Composition Scheme
a. Blocked credit
No ITC available
9. Goods or services or both received by a non-resident taxable person
a. Blocked credit
Generally, No ITC available
b. Exception (means ITC available on the followings)
ITC available on goods imported by him.
10. Goods or services or both used for personal consumption
a. Blocked credit
No ITC available
11. Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples
a. Blocked credit
No ITC available
12. Any tax paid in accordance with the provisions of sections 74, 129 and 130 (Fraud cases)
a. Blocked credit
No ITC available
*Section 74:
Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts.
*Section 129
Detention, seizure and release of goods and conveyances in transit.
*Section 130
Confiscation of goods or conveyances and levy of penalty
Author Bio
MY ITC WAS BLOCKED AND AFTER ONE YEAR IT WAS UNBLOCKING BY OFFICER I GIVE TO LETTER FOR REVERSE FOR THE SAID BLOCKED ITC WITH CONCERN OFFICE BUT HE HAS SAID TO ISSUE NOTICE FOR INTEREST AND PENALTY PLS ADVISED ME IN WHICH SECTION HE WAS ASKING ME FOR SUCH
can we claim itc for laptop & mobile for business
Yes, You can claim to the extend of use of business purpose
can we take itc on laptop & mobile used for business
can we claim itc on bank chargeg
Yes, you can claim itc on bank charges.
can we take itc on repairs of car in used car purchase/sale business.
no u can’t take.
Sir,
if we are not taking any ineligible itc , then where we have to mention that ineligible amount amount in GSTR 3b, i mean in which table
Sir,
if we are taking any ineligible itc , then we mention this in gstr-3b ,like how much amount we are taking in table 4.2
Dear Sir,
can I avail input tax Credit on Maintenance of Commercial vehicle which is used for Business Purposes?
It depends upon type of your vehicle & on type of your business, If you are a Taxi Service provider then you can claim ITC and many situations you can. depending upon the circustances.
if it is furtharance of business and business of same line, then u can take.
How to download the guideline pdf copy
bank cgst & igst reverse in others or under 17/5 reverse
Sir can u provide an example for sec 17(5)(i)?
Dear Sir,
We purchased a ommercial vehicle for our business use but our business is not of transportation of goods so that can we claim ITC of commercial Vehicle??
If we purchased building material for construction of government civil works .Whether ITC available or not?
Sir,
I have doubt
If we purchase capital goods whose seating capacity is more than 13 and which are used in the course or furtherance of business to transport employees from or to factory premises.
Shall i take input tax credit for the same???