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.
Except:
- Used in transportation of goods/passengers,
- Held as stock in trade for further trading
- Used for providing training of driving / navigating / flying such vehicles or conveyances.
2. Food, beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery.
Except:
- When inward supply of such category goods or services or both is used by the registered person for making outward supply of same category goods or services or both or composite supply.
3. Membership in club, health, fitness centre.
Except:
- When inward supply of such category goods or services or both is used by the registered person for making outward supply of same category goods or services or both or composite supply.
4. Rent a cab, health and life insurance
Except :
- makes obligatory for employer to provide the same to its employees under any law for the time being in force;
- When inward supply of such category goods or services or both is used by the registered person for making outward supply of same category goods or services or both or composite supply.
5. Leave/Home Travels concessions given to employees
6. Work Contract Service for construction of immovable property
Except:
- Used in Plant & Machinery
- Used in making supply of work contract service.
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
Except:
- Any of goods imported by him.
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.
Author Bio
I am finance manager in health care we have concern how much percentage ineligible in health industry
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