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Items on which Input tax credit is not allowed under GST Regime (Section 17(5))

Input Tax Credit (ITC) of GST paid on almost all inward supplies of goods and services is allowed under GST except for a some of items which is given below:

  1. 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, navigating such vehicles or conveyances.
  • Further supply of such Vehicles and conveyances.
  1. 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.
  2. Membership of a club health and fitness center.
  3. Travel benefits to employees on vacation such as LTC or home travel concession.
  4. 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)
  1. 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 Composition scheme.

  1. Inward supplies received by a non-resident, except goods imported by him.
  2. Goods/Services used for personal consumption.
  3. Goods lost, stolen, destroyed, written off or disposed of by way of Gift/Free samples.
  4. Amount paid to Govt. on evasion of Taxes.
  5. Supplies received for construction of an immovable property, even when used for furtherance of business.(in case of plant & machinery credit will be available.)
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