Introduction: This article discusses in details the list of Inputs not eligible for Input Tax Credit (ITC) under GST.
As per 17(5) of CGST Act, 2017, following items of inputs which are not eligible for claiming input tax credit (ITC):
1. Motor vehicle or other conveyance like Aircrafts, Ships or yachts etc.
2. Food, beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery.
3. Membership in club, health, fitness centre.
4. Rent a cab, health and life insurance
5. Leave/Home Travels concessions given to employees
6. Work Contract Service for construction of immovable property
7. Goods/services used for construction of immovable property whether used for business or personal use.
8. Taxes paid under composition scheme.
9. Goods or services used for personal use.
10. Goods or services Received by non resident person
11. Goods lost, destroyed, written off, stolen and disposed of by way of gift or free samples.
12. Tax paid due to fraud or wilful misstatement u/s 74, 129 & 130.
The author is a practising CA and is registered Insolvency Professional. He can be reached at [email protected], Mob. +91 9953587496.