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:

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 cavinodchaurasia@gmail.com, Mob. +91 9953587496.

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21 Comments

  1. sriganesha says:

    House keeping services rendered for office engaged in business of software consultancy can avail ITC under GST in the hands of receiver of such services? pls advise…..

  2. IYYAPPAN says:

    Dear sir/madam

    I Am doing industrial outdoor catering service so we can claim ITC or not.

    Can you let me know about for that.

    Thank you.

  3. A K Agarwal says:

    Please clarify if GST paid on repairs to motor vehicles etc and immovable properties used for business purposes will be eligible for ITC.

  4. krishna says:

    Dear Sir,
    We are manufacturing cum retailer, wee rae having no input services but fall under RCM, its request let me confirm whether we can claim input on service tax charged over rented premises which used for office purpose or not, for out output GST liablity.

    Thanks in Advance.

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