ITC of tax paid on almost every inputs and input
services used for the supply of taxable goods and /or services is allowed under
GST except a small list of items provided u/s 17(5) of CGST Act, 2017.
|
S. No. |
Goods and/or services on which Credit is blocked |
Goods and/or services on which credit is allowed |
Remarks |
|
(1 |
(2 |
(3 |
(4 |
|
(i) |
Motor vehicles for transportation of persons having approved seating
capacity of not more than 13 persons (including the driver) including
leasing, renting or hiring thereof. |
(i) for making the following taxable supplies, namely: — (A) further supply of such vehicles or conveyances; or (B) transportation of passengers; or (C) imparting training on driving, flying, navigating such
vehicles or conveyances; (ii) for transportation of goods; |
(A) ITC on motor vehicles used other than eligible purpose is not allowed. (B) ITC on motor vehicle for transportation of persons having capacity
less than 13 persons is also allowed. |
|
(ii) |
Vessel and aircrafts |
When vessels and aircrafts used for the any of following eligible
purposes: - (A) Making further taxable supply of such vessels or aircrafts; or (B) Making taxable supply of
transportation of passengers; or (C) Making taxable supply of imparting training on navigating or
flying such vessels or aircrafts; (D) transportation of goods. |
ITC on vessels and aircrafts used for other than eligible purposes not
allowed. |
|
(iii) |
General insurance, repairing and maintenance, servicing related to
ineligible motor vehicles, vessels and aircrafts. |
When such services are used for eligible purposes. |
If taxpayer claim ITC on motor vehicles, vessels and aircrafts than
ITC on general insurance, repairing and maintenance and servicing is also
allowed. |
|
(iv) |
Food and beverages, outdoor catering, beauty treatment, health
services, cosmetic and plastic surgery. |
(A) Where an inward supply of such 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 or services or both or as an
element of a taxable composite or mixed supply; or (B) The Government notifies the services which are obligatory for an
employer to provide to its employees under any law for the time being in force. |
ITC is allowed: - (A) When such goods and/ or services are used by taxpayers who is in
the same business; (B) When such goods and/or services are provided by the employer to
its employee under a statutory obligation. |
|
(v) |
Membership of a club, health and fitness centre; |
When such services provided by an employer to its employee under a
statutory obligation. |
---- |
|
(vi) |
Travel benefits extended to employees on vacation such as leave or
home travel concession; |
When such services provided by an employer to its employee under a
statutory obligation. |
---- |
|
(vii) |
Goods or services or both received by a taxable person for
construction of an immovable property (other than plant or machinery). |
(A) For construction of plant and machinery; or (B) When the goods and/or services is not capitalized; or (C) When the construction is not own account. |
ITC is not allowed on such goods and/or services received by a taxable
person for construction of immovable property other than plant and machinery
on his own account even if such goods and/or services used in course or
furtherance of business |
|
(viii) |
Works contract services when supplied for construction of an immovable
property (other than plant and machinery) |
(A) Where it is an input service for further supply of works contract
service; or (B) Immovable property is plant and machinery. |
---- |
|
(ix) |
Goods or services or both on which tax has been paid under section 10
i.e. Tax paid under composition scheme. |
---- |
---- |
|
(x) |
Goods or services or both received by a non-resident taxable
person. |
ITC allowed on imported goods by taxable person. |
---- |
|
(xi) |
Goods lost, stolen, destroyed, written off or disposed of by way of
gift or free samples. |
|
ITC is not allowed in respect of the following goods: - (A) Stolen goods (B) Destroyed goods (C) Goods that is written off (D) Goods that is disposed of by way of free samples (E) Goods that is disposed by way of gift (D) Lost goods |
|
(xii) |
Tax paid in case of fraud, detention, confiscation i.e. Tax paid under
section 74, 129 and 130. |
---- |
---- |
|
(xiii) |
Rent-a-cab, life insurance and health insurance. |
(A) The Government notifies the services which are obligatory for an
employer to provide to its employees under any law for the time being in
force; or (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 or services or both or as part
of a taxable composite or mixed supply. |
|
|
(xiv) |
Goods or services or both used for personal consumption. |
--- - |
---- |
Disclaimer: This information is updated till 03.07.2020.
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