Inadmissible Input Tax Credits (ITC) Under GST
Section 17(5) of CGST Act 2017 has been amended by CGST (Amendment) Act 2018. Below is the summary of Inadmissible / Blocked Input Tax credits under GST Act, as per amended Section 17(5):
Summary of Inadmissible / Blocked Input Tax credits under GST
| Clause | ITC not available on | Exceptions |
| (a) | Motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver) | If input service used for following taxable supplies: a) further supply of such vehicles or conveyances b) transportation of passengers c) imparting training on such motor vehicles |
| (aa) | Vessels and aircrafts | If input service used for following taxable supplies: a) further supply of such vessels & aircrafts b) transportation of passengers c) imparting training on navigating such vessels or flying aircrafts d) transportation of goods |
| (ab) | Services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft, as specified in clause (a) and (aa) above | a) If services used for the specified exceptions thereon b) where received by a taxable person engaged— (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him |
| (b) (i) | Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft as referred in clause (a) & (aa) above, except when used for the purposes specified therein, life insurance and health insurance | When used in supply of similar nature of business |
| (b) (ii) | Membership of a club, health and fitness centre | NO EXCLUSION |
| (b) (iii) | Travel benefits extended to employees on vacation such as leave or home travel concession | If input service used for:a) employees, if made obligatory by government under any law |
| (c) | Works contract services when supplied for construction of an immovable property (other than plant and machinery) | When used in supply of similar nature of business |
| (d) | Goods or Services used for construction of an immovable property (other than plant or machinery) | NO EXCLUSION |
| (e) | GST paid under Composition scheme as per Section 10 of CGST Act 2017 | NO EXCLUSION |
| (f) | Goods or services or both received by a non-resident taxable person | Import of Goods by Non Resident Taxable person |
| (g) | Goods or services used for Personal consumption | NO EXCLUSION |
| (h) | Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples | NO EXCLUSION |
| (i) | GST paid as demand raised by revenue authorities (Sec 74), detention, search & seizure (Sec 129) and penalty in case of confiscation of goods or conveyance (Sec 130) | NO EXCLUSION |
Note :
Plant & Machinery means – apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes—
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises