Goods or Services on which Input credits will not be available in GST

As per Sec­tion 17(5) of CGST Act 2017 on the fol­low­ings Input tax cred­it would not be avail­able:

  • motor vehi­cles and oth­er con­veyances except when they are used––
    • for mak­ing the fol­low­ing tax­able sup­plies, name­ly:—
      • fur­ther sup­ply of such vehi­cles or con­veyances ; or
      • trans­porta­tion of pas­sen­gers; or
      • impart­ing train­ing on dri­ving, fly­ing, nav­i­gat­ing such vehi­cles or con­veyances;
    • for trans­porta­tion of goods;

 

  • the fol­low­ing sup­ply of goods or ser­vices or both—
    • food and bev­er­ages, out­door cater­ing, beau­ty treat­ment, health ser­vices, cos­met­ic and plas­tic surgery except where an 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 an ele­ment of a tax­able com­pos­ite or mixed sup­ply;
    • mem­ber­ship of a club, health and fit­ness cen­tre;
    • rent-a-cab, life insur­ance and health insur­ance except 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; or
      • such 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; and
    • trav­el ben­e­fits extend­ed to employ­ees on vaca­tion such as leave or home trav­el con­ces­sion;

 

  • 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;
  • 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

Expla­na­tion.––For the pur­pos­es of claus­es (c) and (d), the expres­sion “con­struc­tion” includes re-con­struc­tion, ren­o­va­tion, addi­tions or alter­ations or repairs, to the extent of cap­i­tal­i­sa­tion, to the said immov­able prop­er­ty;

  • goods or ser­vices or both on which tax has been paid under sec­tion 10;
  • goods or ser­vices or both received by a non-res­i­dent tax­able per­son except on goods import­ed by him;
  • goods or ser­vices or both used for per­son­al con­sump­tion;
  • goods lost, stolen, destroyed, writ­ten off or dis­posed of by way of gift or free sam­ples; and
  • any tax paid in accor­dance with the pro­vi­sions of sec­tions 74, 129 and
  • The Gov­ern­ment may pre­scribe the man­ner in which the cred­it referred to in sub-sec­tions (1) and (2) may be

Expla­na­tion.––For the pur­pos­es of this Chap­ter and Chap­ter VI, the expres­sion “plant and machin­ery” means appa­ra­tus, equip­ment, and machin­ery fixed to earth by foun­da­tion or struc­tur­al sup­port that are used for mak­ing out­ward sup­ply of goods or ser­vices or both and includes such foun­da­tion and struc­tur­al sup­ports but  excludes—

  • land, build­ing or any oth­er civ­il struc­tures;
  • telecom­mu­ni­ca­tion tow­ers; and
  • pipelines laid out­side the fac­to­ry premis­es.

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