List of Goods and Services Not Eligible for Input Tax Credit

Goods and Services Not Eligible for ITC

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.

Recommended: All Decisions & Latest Updates on 32nd GST Council Meeting

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.ItemsExceptions
1Motor VehiclesExcept in casesExtended supply of such vehicles or conveyances;Transportation of passengers or
2Other ConveyancesProviding training on driving, navigating such vehicles orConveyances for transportation of goods;
3Foods, Outdoor Catering, Beauty Treatment, Health Services Cosmetic, Plastic SurgeryExcept 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
4Membership of a Club,
5Membership of a Health Centre
6Membership of a Fitness Centre;
7Rent-a-cab, Life Insurance, Health InsuranceThe 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.
8Travel benefits extended to employees on vacation such as leave
9Travel benefits on home travel concession
11Works contract services when supplied for construction of an immovable propertyExcept where it is an input service for extended supply of works contract service and plant and machinery
12Goods or services or both received by a taxable person for construction of an immovable propertyExcept 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
13Goods or services or both on which tax has been paid under section 10;ie. Under section 10 composition scheme
14Goods or services or both received by a non-resident taxable personExcept on goods imported by him
15Goods or services or both used for personal consumption
16Goods lost
17Goods written off
18Goods destroyed
19Goods stolen
20Goods disposed of by way of gift or free
samples
21Any tax paid in accordance with the provisions of sections 74, 129 and 130.I.e. In

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