Input tax credit is considered very significant for every business unit which is always in the need to invest in the business in the manner of capital. The need of capital is required each and every time a business gets ready for its next project. This time in GST, a business unit will be eligible for input tax credit, only if certain cases are met with the transactions.
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Invoice matching of both the parties will be the key issue for checking and granting the input tax credit to the dealer while in certain cases, input tax credit may not be available for some rules and regulation purpose.
Some of the Goods and Service which are not Eligible for Input Tax Credit
Read Also: Input Tax Credit Guide Under GST: Calculation with Proper Examples
| S.No. | Items | Exceptions |
|---|---|---|
| 1 | Motor Vehicles | Except in casesExtended supply of such vehicles or conveyances;Transportation of passengers or |
| 2 | Other Conveyances | Providing training on driving, navigating such vehicles orConveyances for transportation of goods; |
| 3 | Foods, Outdoor Catering, Beauty Treatment, Health Services Cosmetic, Plastic Surgery | Except where an inward supply of goods or services or both of a particular category is consumed 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 |
| 4 | Membership of a Club, | – |
| 5 | Membership of a Health Centre | – |
| 6 | Membership of a Fitness Centre; | – |
| 7 | Rent-a-cab, Life Insurance, Health Insurance | The Government states the services which are mandatory for an employer to provide to its employees under any law for the time being in force; orSuch 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. |
| 8 | Travel benefits extended to employees on vacation such as leave | – |
| 9 | Travel benefits on home travel concession | – |
| 11 | Works contract services when supplied for construction of an immovable property | Except where it is an input service for extended supply of works contract service and plant and machinery |
| 12 | Goods or services or both received by a taxable person for construction of an immovable property | Except goods or services received on his own account including when such goods or services or both are used in the course or furtherance of business and plant and machinery |
| 13 | Goods or services or both on which tax has been paid under section 10; | ie. Under section 10 composition scheme |
| 14 | Goods or services or both received by a non-resident taxable person | Except on goods imported by him |
| 15 | Goods or services or both used for personal consumption | – |
| 16 | Goods lost | – |
| 17 | Goods written off | – |
| 18 | Goods destroyed | – |
| 19 | Goods stolen | – |
| 20 | Goods disposed of by way of gift or free samples | – |
| 21 | Any tax paid in accordance with the provisions of sections 74, 129 and 130. | I.e. In |
