Blocked Credit (ITC) | GST | Section 17(5) | CA. Jitendra Kumar

Описание: Explained in this video blocked credit (ITC) under section 17(5) of GST Law.

ITC has been blocked for specified goods and services.

(a) Motor vehicles for transportation of persons having approved seating capacity of not more than 13 persons (including the driver), except when they are used for making the following taxable supplies, namely:
Further supply of such motor vehicles
Transportation of passengers
Imparting training on driving such motor vehicle

(aa) Vessels and aircrafts except when they are used:
For transportation of goods
Further supply of such vessels or aircraft
Transportation of passengers
Imparting training on navigating such vessels
Imparting training on flying such aircraft

(ab) The following supply of goods or services or both:
[In so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa)]
Services of general insurance
Servicing
Repair and maintenance
Note: ITC available if the above are used for exceptions of clause (a) or clause (aa)

(b) The following supply of goods or services
(i) Food or beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when they are used for the purpose specified therein, life insurance and health insurance.
Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both 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

(b) The following supply of goods or services
(ii) membership of a club, health and fitness centre
(iii) travel benefits extended to employees on vacation such as leave or home travel concession
Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.

(c) Works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service

(d) 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

(e) Goods or services or both on which tax has been paid under section 10 (Composition Dealer)

(f) Goods or services or both received by a non-resident taxable person except on goods imported by him

(fa) Goods or services or both received by a taxable person, which are used or intended to be used for activities relating to his obligations under corporate social responsibility referred to in section 135 of the Companies Act, 2013

(g) goods or services or both used for personal consumption

(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples

(i) any tax paid in accordance with the provisions of sections 74, 129 and 130


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