As per Section-17(5) of CGST Act, 2017, Input Tax Credit (ITC) shall not be available in respect of the following namely:-
♠ Motor Vehicles and other conveyances except when they are used
(i) For making the following taxable sup lies, namely
(ii) For Transportation of Goods
♠ Supply of Goods or Services or both:-
(i) Food and Beverages,
Cosmetic and Plastic Surgery
Where a such inward supply of Goods or Services or both of a particular category is used by person 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.
(ii) ITC not allowed on Membership of:-
(a) notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force,
(b) 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 and services or both or as part of a taxable composite or mixed supply.
(iv) ITC not allowed on Travel benefits extended to employees on vacation such as
♠ Work contract services when supplied for construction of immovable property (other than plant and machinery).
Where it is an input services for further supply of works contract services.
♣ 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.
Construction includes re-construction, renovation, additions or alterations or repairs to the extent of capitalisation of said immovable property, i.e. ITC not available (if capitalised).
♣ Goods or services or both on which tax has been paid u/s 10 (Composition Levy).
♣ Goods or services or both received by a non-resident taxable person* except on goods imported by him.
♣ Goods or services or both used for personal consumption.
♣ Goods lost, stolen, destroyed, written off, or disposed of by way of gift or free samples.
♣ Any tax paid in accordance with the provisions of Section-74, 129, & 130.
Non-resident taxable person*
Non resident taxable person means a taxable person who occasionally undertakes transactions involving supply of goods or services or both whether as principal or agent or in any other capacity but who has no fixed place of business in India.