List of blocked credit under GST including exception (Section 17(5) of CGST Act, 2017)
A brief list where input tax credit under GST is not available
(Section 17(5))
There are some cases where there is no input available under
GST to the applicant and there are some exceptions to this, hence to know more
about this please read carefully the whole article.
1.
Motor Vehicle and other conveyance / Vessel and Aircraft
a.
Blocked Credit
Input tax credit not available on
motor vehicle and any other conveyance to transport persons,
having seating capacity not more than 13 persons (including the driver)
including leasing, renting or hiring thereof.
And also, not available on Vessel
and Aircraft including leasing, renting or hiring thereof.
Services of general insurance,
servicing, repair & maintenance on such motor vehicle and other conveyance
or Vessel and Aircraft.
b.
Exception (means ITC
available on the followings)
When Such Motor Vehicle and other
conveyance or Vessel and Aircraft used for
i.
Further supply
ii.
Transportation of passengers
iii. Imparting training on driving of such motor vehicle
iv. Imparting training on navigating / flying such vessels or aircraft
v.
Transportation of Goods
ITC would further be admissible
for leasing, renting or hiring of motor vehicles when such motor vehicles are
used for above said purposes or where the recipient is engaged in the
manufacture of such motor vehicles or Vessels / Aircrafts or in the supply of
general insurance services in respect of such motor vehicles or Vessels / Aircraft
insured by him.
2.
Supply of Food & beverages, outdoor catering,
beauty treatment, health services, cosmetic and plastic surgery.
a.
Blocked credit
Generally, no ITC available
b.
Exception (means ITC
available on the followings)
ITC would be available when
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 an element of a taxable composite or mixed
supply
ITC would be admissible where it
is obligatory for an employer to provide such supplies to its employees under
any law for the time being in force.
3.
Memberships of club, health and fitness center
a.
Blocked credit
No ITC available
4.
Rent a cab, life insurance and health insurance
a.
Blocked credit
Generally, no ITC available
b.
Exception (means ITC
available on the followings)
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
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.
5.
Travel benefits
extended to employees on vacation such as leave or home travel concession
a.
Blocked credit
No ITC available
6.
Works contract
services when supplied for construction of an immovable
property (other than plant and machinery)
a.
Blocked credit
Generally, No ITC available
b.
Exception (means ITC
available on the followings)
Where it is an input service for
further supply of works contract service.
7.
Goods or services or both
received by a taxable person for construction of an immovable property (other
than plant or machinery) on his own account including when such goods
or services or both are used in the course or furtherance of business
a.
Blocked credit
No ITC available
8.
Goods or services or both on which tax has been
paid under section 10 i.e. Composition Scheme
a.
Blocked credit
No ITC available
- Goods or services or both received by a non-resident
taxable person
a.
Blocked credit
Generally, No ITC available
b.
Exception (means ITC
available on the followings)
ITC available on goods imported
by him.
10. Goods
or services or both used for personal consumption
a.
Blocked credit
No ITC available
11. Goods
lost, stolen, destroyed, written off or disposed of by way of gift or free samples
a.
Blocked credit
No ITC available
12. Any
tax paid in accordance with the provisions of sections 74, 129 and 130 (Fraud
cases)
a.
Blocked credit
No ITC available
*Section 74:
Determination of tax not paid or
short paid or erroneously refunded or input tax credit wrongly availed or utilized
by reason of fraud or any willful misstatement or suppression of facts.
*Section 129
Detention, seizure and release of
goods and conveyances in transit.
*Section 130
Confiscation of goods or
conveyances and levy of penalty
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