Input Tax Credit Under GST Not allowed in Certain Circumstances

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Input Tax Credits Not allowed in Following Eleven Circumstances as per Section 17(5)-

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1. Motor Vehicles and other Conveyances except when such Vehicle used for –
(a) Sale of Such Vehicles or conveyance; (Like Car Dealers)
(b) Transportation of passengers; or
(c) Imparting training on driving, flying, navigating such vehicles or conveyance;
(d) Transportation of goods

2. Supply of goods or services or both –
i. Food and Beverages, Outdoor Catering, Beauty treatment, Health services, Cosmetic and plastic surgery except when dealer is in the business of sale or service of such items
ii. Membership of a club, health and fitness centre,

3. Rent-a-cab, Life insurance, Health insurance except
(i) where the Government notifies the services which are obligatory for an employer to provide to its employees
under any law for the time being in force;
(ii) when dealer is in the business of sale of service of such items

4. Travel benefits extended to employees on vacation such as LTC etc

5. Work Contract Service when supplied for construction of an immovable property (other than P & M) except where it is an input service for further supply of Work Contract Service.

6. Goods or Services or both received for construction of Immovable Property (Other than P&M) on his own account including when such good or services are used in the course or furtherance of business.

7. Composition Dealer

8. Non-resident taxable person except on goods imported by him;

9. Personal Consumption of Goods and Services

10. Lost, Stolen, destroyed, written off or disposed of by way of gift or free samples; and

11. Tax paid on account of fraud, wilful misstatement or Suppression of facts; Detention, Seizure and release of goods and conveyances in transit;

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Regards
ACA SOURAV BAGARIA