Input Tax Credit (ITC) of GST paid on almost all inward supplies of goods and services is allowed under GST except for some of the items which are given below:
- Motor Vehicle and conveyances, But in following cases credit will be available (For Taxable supplies only)
- Transportation of goods.
- Transportation of Passengers.
- Imparting training on driving, flying, and navigating such vehicles or conveyances.
- Further supply of such vehicles and conveyances.
- Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, Except when used For providing taxable supply of same category or used as a content of mixed taxable supply.
- Membership of a club health and fitness center.
- Travel benefits to employees on vacation such as LTC or home travel concession.
- Works contract services for construction of an immovable property, Except when,
- Used as a input for providing further work contract service.
- mmovable property is plant & Machinery. (Means credit will be available in case of plant & machinery)
- Rent a cab, Life insurance and health insurance, Except where
- The Govt. has made it obligatory to provide these services to employees.
- For providing taxable supply of same category or used as a content of mixed taxable supply.
Supplies on which tax has been paid under the Composition scheme.
- Inward supplies received by a non-resident, except goods imported by him.
- Goods/Services used for personal consumption.
- Goods lost, stolen, destroyed, written off or disposed of by way of Gift/Free samples.
- Amount paid to Govt. on evasion of Taxes.
- Supplies received for construction of an immovable property, even when used for furtherance of business.(in case of plant & machinery credit will be available.)
