Restrictions On Availing ITC ( Input Tax Credit ) under GST

(a)       Input tax credit in following cases shall be available only fulfilment of specific conditions mentioned in column 3 below:

 

S. No.

Goods or Services for which ITC is available on fulfillment of certain conditions 

Conditions for taking ITC for goods and/or services mentioned in column 2

1.

Motor vehicles and Other Conveyances

Used for transportation of Goods

2.

Motor vehicles and Other Conveyances

For Making Taxable Supplies of :-
(a) Further supply of Vehicles or conveyance
(b) Transportation of passengers
(c) Imparting Training on driving, flying, navigating such vehicles or conveyances

3.

Food/beverages

If Outward Taxable Supply is Food/ beverages

4.

Outdoor Catering

If Outward Taxable Supply is outdoor catering

5.

Beauty treatment

If Outward Taxable Supply is beauty treatment

6.

Health Services

If Outward Taxable Supply is health services

7.

Cosmetic/Plastic Surgery

If Outward Taxable Supply is cosmetic/ plastic surgery.

8.

Rent-a-Cab

Government notifies it which are obligatory for employer to provide to its employees under any law in force.

9.

Travel benefits to employees on vacation such as Leave or home Travel Concession

 

10.

Life and health insurance

Government notifies it which are obligatory for employer to provide to its employees under any law in force.

11.

Works Contract Service for construction of immovable property

“Construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property,

- Works contract service if for construction of Plant and Machinery
- Works contract Service if input service for further supply of works contract service

Plant and Machinery’ means apparatus, equipment and machinery, fixed to earth by foundation or structural support that are used for making outward supply and includes such foundation and structural supports but excludes:

- land, building or any other civil structure
- Telecommunication towers; and
- Pipelines laid outside the factory premise

12.

Goods/services received on own account for construction of immovable property

 
Construction includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property.

Goods/services, received on account, for construction of Plant and Machinery

‘Plant and Machinery’ means apparatus, equipment, machinery, pipelines, telecommunication tower fixed to earth by foundation or structural support that are used for making outward supply and includes such foundation and structural supports but excludes.

Land, building or any other civil structure

Telecommunication towers

Pipelines laid outside the factory premise.

 

(b)       Input tax credit shall not be available for inward supply of following goods and/or services:

I.          Membership of club

II.         Health and fitness center

III.        Travel benefits to employees on vacation such as Leave or home Travel Concession

IV.        Where tax has been paid in composition scheme on goods

V.         Goods and/or services used for personal consumption;

VI.        Goods lost, stolen, destroyed, written off or disposed of by way f gift or free samples; and

VII.       Any tax that has been paid in pursuance of any order where demand has been confirmed on account of any fraud, willful misstatement, suppression of facts or paid under sections 129, 130 of the CGST Act.

 
Related Topics ....
Conditions For Taking ITC ( Input Tax Credit) under GST
Limitations On Availing ITC (Input Tax Credit) under GST
Determination Of Input Tax Credit (ITC) In Respect Of Inputs Or Input Services ( Rule-7 of ITC Rules)
Determination Of Input Tax Credit (ITC) In Respect Of Capital Goods (Rule-7 of ITC Rules)
Restrictions On Availing ITC ( Input Tax Credit ) under GST
Utilizing Input Tax Credit (ITC) in respect of IGST, CGST, Cess and SGST/UTGST
Availability Of Input Tax Credit (ITC) In Certain Special Circumstances under GST
Transfer, Reversal Of Input Tax Credit (ITC) Under GST
Distribution Of Credit By Input Services Distributor (ISD) under GST
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