List of Ineligible Items on which ITC is not allowed under GST Laws – Updated as on 8th September, 2020
For a taxpayer, it is essential to determine whether the tax paid on the inward supplies is eligible as Input Tax Credit (ITC) or shall fall within the ambit of ineligible ITC. Section 17(5) of CGST Act 2017 provides for cases wherein a taxpayer would not be entitled to claim ITC unless it falls within the exceptions as provided.
In this relevance, list of Goods & Services falling within the ambit of Blocked Credit as per Sec. 17(5) of CGST Act 2017 has been chalked out mapping the same with applicable HSN / SAC tariff heading below:
| Sl.
No. |
Category of goods & services | HSN / SAC | Exceptions where ITC is allowed |
| 1 | Motor Vehicles & Other Conveyances | 87 |
|
| 2 | Insurance, repairs and maintenance for motor vehicles and conveyance not allowed | 997134,
998714, |
|
| 3 | Food & Beverages, Outdoor Catering, Beauty Treatment, Health Services Cosmetic, Plastic Surgery | 99633
99972 99931, 99932, 99933, 99934, 99935 |
|
| 4 | Membership of a Club, Health and Fitness Centre | 99972 | – |
| 5 | Rent-a-cab, Life Insurance & Health Insurance | 996601
997132, 997133 997141, 997142 |
The Government notifies the services which are mandatory 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 of a particular category is used for making an outward taxable supply of the same Category of goods or services or as part of a taxable composite or mixed supply. | |||
| 6 | Travel benefits extended to employees on vacation | NA | – |
| 7 | Travel benefits on home travel concession (LTA) | NA | – |
| 8 | Works contract services when supplied for construction of an immovable property | 9954 | Except where it is an input service for further supply of works contract service and plant and machinery |
| 9 | Goods or services received by a taxable person for construction of an immovable property | 9954 | Except goods or services received on his own account including when such goods or services or both are used in the course or furtherance of business and plant and machinery |
| 10 | Goods or services on which tax has been paid under section 10 (Composition Scheme) | NA | – |
| 11 | Goods or services or both received by a non-resident taxable person | NA | Except on goods imported by him |
| 12 | Goods or services or both used for personal consumption | NA | – |
| 13 | Goods lost, written off, destroyed or damaged or stolen | NA | – |
| 14 | Goods disposed of by way of gift or free samples | NA | Gifts to employees is exempted from GST upto a value of Rs 50,000 per employee – Schedule I of CGST Act, 2017 (Refer Sec 7) |
| 15 | Any tax paid in U/Sec 74, 129 and 130. (i.e. in fraud, misstatement, etc.) | NA | – |
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Hello Sir,
I am constructing warehouse building at total cost of Rs. 9.50 Crores, out of this i have paid GST of Rs. 1.5 Crores. I will used this warehouse factory for renting to another company at yearly rent of Rs. 1 cores, plus GST of Rs. 18 lacs .
Now my concern is, weather am i eligible to claim the Input Tax credit of Gst paid Rs. 1.5 crores against my output tax laibility, or Rs. 1.5 crores is blocked credit u/s 17(5) of CGST Act,2017 ?
Dear Sir,
We have DG sets for supply of standby power to the flats in our condominium .These are run in case of grid power failure.
As per directions of CAQM in Delhi NCR region during winters we are being asked to carry out DG sets retrofit to
-burn a mix of Gas and Diesel instead of HS Diesel
-install an Emission reduction device at the exhaust of DG sets below 800 KW .
Please advise if input tax credit is available to RWA on such retrofits
Best regards
Suresh Kumar Khurana
ITC is eligible on DG Sets if same is used as Plant and Machinery. Also capitalize the same in books of accounts. Rule 42 – Reversal of Common ITC for exempt supply shall also be applicable
Can we claim refund of ITC for DG purchased as power backup of a Software Export Company having LUT
Really usefully for us