In this article, you can quickly check out the list of goods and services that are not eligible for an input tax credit as per the GST Act, 2017.
Introduction of 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 for 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 the input tax credit, only if certain cases are met with the transactions.
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Invoice matching of both parties will be the key issue for checking and granting the input tax credit to the dealer while in certain cases, the input tax credit may not be available for some rules and regulation purposes.
Some of the Goods and Services Which are Not Eligible for ITC
Read Also: Input Tax Credit Guide Under GST: Calculation with Proper Examples
| S.No. | Items | Exceptions |
|---|---|---|
| 1 | Motor Vehicles | Except in cases: “Extended supply of such vehicles or conveyances;” “Transportation of passengers” |
| 2 | Other Conveyances | “Providing training on driving, navigating such vehicles” “Conveyances for transportation of goods” “Motor vehicles for transportation of persons having an approved capacity of more than thirteen persons including driver when they are used for business purposes” “Buses for pick and drop of employees (if approved capacity is more than 13 persons including driver) – part of above.” |
| 3 | Insurance, repairs and maintenance for motor vehicles and conveyance are not allowed | “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” “ITC is available in respect of food and beverages or health services where the provision of such goods or services is obligatory for an employer to provide to employees under any law for time being in force.” |
| 4 | Membership in a Health Centre | “Only allowed under this head if ITC on vehicles are allowed;” “If the ITC on any type of vehicle is not allowed, then the cost of insurance, repairs and maintenance for such vehicles is also not allowed.” |
| 5 | Membership of a Club, | – |
| 6 | Membership in a Fitness Centre; | – |
| 7 | Works contract services when supplied for the construction of an immovable property | – |
| 7 | Rent-a-cab, Life Insurance, Health Insurance | “Gifts to employees are exempted from GST up to a value of Rs 50,000 per employee – Schedule I of CGST Act, 2017 (Refer Sec 7)” |
| 8 | Travel benefits extended to employees on vacation such as leave | – |
| 9 | Travel benefits on home travel concession (LTA) | – |
| 11 | “Except where it is an input service for the extended supply of works contract service and plant and machinery” | Goods or services or both received by a taxable person for the construction of an immovable property |
| 12 | “Gifts to employees is exempted from GST up to a value of Rs 50,000 per employee – Schedule I of CGST Act, 2017 (Refer Sec 7)” | “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 | “Gifts to employees are exempted from GST up to a value of Rs 50,000 per employee – Schedule I of CGST Act, 2017 (Refer Sec 7)” |
| 21 | Any tax paid in accordance with the provisions of sections 74, 129 and 130. | I.e. In Fraud, Misstatement, etc. |
SIR,
I PURCHASE NEW LAND AND BUILDING (FACTORY) FOR MY BUSINESS. FOR PUT TO USE OF FACTORY I HAVE DONE SOME ELECTRICAL AND SANITATION WORK IN NEW FACTORY. CAN I TAKE INPUT ON MATERIALS PURCHASE?
As this will be treated as capital nature cost, so if you don’t claim depreciation on GST component of cost then you can claim credit for the same.
Sir,
I make the e-way bill in March for transport of goods but transporter can not Move goods due to some reason now e-way bill expired now what I have to do and who generate an e-way bill.
Now you have to cancel the generated e-way bill, and if you yourself transport the goods then you need to generate e way bill
I have received commercial rent income and I pay the professional fee to advocate can I claim input credit for professional fees which are charged by the advocate? I have only commercial rental income.
If advocate services are availed in context of your business then you can claim ITC of the same.
We have restaurant business and I have purchase grocery item for making food for sale can we claim ITC on grocery items.
I am a GST registered manufacturer. I want to sell my product to a NGO not registered under GST. Should i raise tax invoice or Bill of supply.
Kindly answer.
Tax Invoice
CAN I GET INPUT CREDIT ON TELEPHONE BILL, CAR SERVICE, COURIER CHARGES AND WE BUY NEW FURNITURE SO CAN I TAKE CREDIT OF IT OR NOT PLEASE GIVE ME REPLY
Yes, you can claim I.T.C. on these expenses. ITC on service charges of car would only be available if the car is used for business purpose.
Sir, we are purchasing coffee seeds not roasted under HSN code 0901 which is exempted/nil rated in GST. but we are paying transport charges for inward and outward to transport contractor as the recipient under reverse charge. shall we claim input tax on services received from transport charges?
Thanks and regards
No ITC is available in case of supply of exempted goods.
Sir,
I am having canteen services in industries & supplying some self-prepared food items to industries so can I claim ITC on grocery items which were purchased for preparing food.
Thanks
ITC AVAIL FOR PNG GAS PIPELINE GAS USE IN MANUFACTURING?
SIR, I PURCHASE LED LIGHT FOR SHED IN COMPANY SO ITC ELIGIBLE?
Yes, you can claim ITC for the led lights purchased for the shed.
Hotel vouchers and conference done for business purpose, IGST Charged , ITC available or not for this.
If hotel vouchers and conference charges exclusively includes Food and beverages bill and outdoor catering bill, then on these expenses ITC will not be available, otherwise ITC will be available for all expenses.
Sir, we have purchased steel, bricks and sheets for construction of the factory. Can we eligible for Input tax credit?
No ITC available for goods or services or both received for construction of immovable property on his own account. Please refer Sec 17(5)(d) of CGST Act,17. ITC will be available only if they are used in providing further works contract or construction services.
Dear Sir,
I have bought Air Condition AC for my office use, Can I avail input tax credit on the GST paid for the purchase of New AC
Regards,
Dhaval
Yes, you can claim ITC on it provided depreciation is not claimed on GST paid.
Thanks for the reply on my query of purchase AC for my office.
Is CGST & SGST on car insurance, I use a car for business & OWN purpose. Is allowed as the credit under GST act.
Yes, ITC will be available on insurance taken for the car used in business.
Thank you for your support….
Sir, I have Installed firefighting system in my commercial building and the amount had been paid through cheque including GST (As per the bill) Can I claim the GST given?
Yes, you can claim the ITC.
Hi sir, I use to supply food items in Jharkhand area. I want to purchase two-wheeler motorcycle for me for taking orders from the market and supplying too. Can I claim ITC on two-wheeler vehicle, which will be used for the business purpose?
Dear Sir, We are the manufacturer of vehicle parts. Can we take credit for medical equipment, which is using in the medical department within the premises?
SIR, I HAVE BOOKED A HOTEL FOR STAY…. IT IS OUT OF MAHARASHTRA HOTEL BOOKING, CAN I TAKE A CREDIT OF IT?
If you have stayed in the hotel for business purpose then it will be eligible for input credit.
Sir, In this case, the hotel has raised a bill with SGST and CGST whereas I am from another State So I can claim CGST alone. Can you refer me the section number from the act?
The credit of CGST can be claimed since SGST is state specific.
Dear Dir,
We have business works contract like purchase material for construction of the building and provide construction services. but one flats purchases for office staff like the guest house. In this availed ITC or no.
No ITC for the purchase of flats can be availed as it is not for the further supply of works contract services.
Flush Doors & Tweak Wooden Doors Purchased For Lodge for 30 lacs with 18% GST. Can we take input tax credit for this?
SIR, I HAVE PURCHASED PLYWOOD FOR NEW FURNITURE MAKING WE WILL ELIGIBLE FOR ITC CREDIT
Yes you can claim ITC.
WE ARE THE MFG TURBO MACHINERY AND WE HAVE RECD SECURITY MANPOWER BILL IN THAT IGST 18% THIS IGST WILL BE TAKE AS INPUT CREDIT
You can claim the ITC.
Whether ITC available or not, if manpower supply for repairs & maintenance of P&M..
Yes ITC available.
Is ITC available on electrical fittings for my office, like the change of led light and wire or led tv?
I am a service provider.
For repairing & renovation of office, I bought Glasses, Plywood, Formica & hardware
All are capitalized to furniture & fixture.
Can I avail GST on all above purchases?
Please guide
Yes you can.
Sir,
We are mfg co. registered under GST, for installation of new overhead crane & making of strong surface we purchased Ready Mix Concrete (RMC) from Ultratech can you take credit?
Please advice
Thanks
As ITC will not be eligible on, inward supplies received for construction of immovable property (other than plant and machinery) for own purpose by any taxable purpose. So you can’t avail ITC
Thanks, sir!
In July 2017 on the purchase of roofing sheet (for factory shed) we have taken credit, is it admissible? and we are taking a credit of tea-coffee powder (& Tea machine Rent also) for factory staff. Can we take credit?
Please help
Thanks!
ITC on expenses incurred for the purpose of business will be allowable.
Hello sir
We have works contract like purchase material for construction of the building and provide construction services. In this availed ITC or not?.
If you are providing works contract service then you can avail the ITC of tax paid on the purchase of material.
Whether ITC is available for the premium paid for group accident insurance, Mediclaim insurance, workman compensation policies for employees? Any conditions?
Yes, ITC will be available for the premium paid for group accident insurance, Mediclaim insurance, workman compensation policies for employees.
Is this not covered under blocked credit under section 17 (5) (b) (iii) of CGST Act?
If the insurance for employees is taken to fulfil any obligation imposed by government/act, then the ITC would be available. (As per the exemption mentioned in section 17(5)(b)(iii).
If we purchase utensils, suppose Pressure cooker, can we avail ITC on the same as we are engaged in engineering services and need to send labour to the site along with our engineer. Labours are paid as per minimum wages and demand food extra and they make food for themselves at the site. for that, we need to purchase utensils, this time we have to purchase a pressure cooker. Can we avail the ITC for cooker purchase?
We are in the business of builder/developer and construction of residential and commercial buildings (but not civil contractor) can we get input tax credit for works contract given to other contractors (e.g contract for steel frames or internal roads which including material and labour)
Tea, coffee, biscuits and water purchased for office kitchen,
Can ITC be claimed on such purchases??
As per rule 17(5) of cgst act, ITC on goods and services in respect to foods and beverages will only b allowed if these services are availed for providing services of the same nature.
GST Input can be availed on the party of our customers and the member for personal or business use in Hotel and all the stay in Room and lunch bill for the refreshment of guest will be eligible for input. Regular maintenance material will be eligible for input.
Is it possible to avail input tax credit on lease rental property?
Yes, you can avail ITC of the tax paid on lease rentals.
When we are Constructing Hotel Project and executed Works contract , Building Material , Gardening and Landscaping , Installing Lifts , Plant and Machinery, Kitchen Equipment , Cutlery and Glassware, Furniture, Bedding , Electrical Equipment and DG set,,Lighting and Fittings, Painting, Interior Decoration,Security Equipment, Computer Equipment, Printing and Stationery , Professional ,Legal , Audit Fees where we have paid CST or VAT or Excise Duty or Service tax or Octroi or Cess as applicable prior to 1.7.2017 and after 1.7.2017 GST is applicable. How do we claim ITC under TRAN 1 or GSTR 3B please explain?
As of now the facility to avail credit under TRAN-1 is not available as the form is closed from 27/12/2017 on GST portal. Any unutilized credit of eligible duties & taxes can now not be availed through GSTR-3B as only it can be carried forward by filling TRAN-1.
Can we get input credit on stationery items for office use under GST?
Yes, you can get input credit.
yes, you can avail ITC as the same for the furtherance of business.
Our Organisation is providing Health care services (Hospital, Optical & pharmacy) so could you please clarify regarding GST input, like can we claim input for Travelling Charges incurred for Business, Conveyance charges, Marketing expenses like Camp etc, Incentives to Employees for target completion etc?
Since health care services are exempt from GST, therefore, no credit will be allowed.
Unlike Excise Law, GST Law provides for ITC on the supply of all goods and services including e.g. furniture, stationery etc. How is it possible to comply with Section 17(2) of CGST Act, where you are also supplying exempt goods.
Insurance of Stock, Staff & worker & Plant, Building & Machinery credit is applicable or not please reply
Dear Sir, Our Company is constructing a Hotel. A lot of construction material is being purchased. please guide me for this.
1 Is bricks, paints, steel, sanitary goods, electrical items etc.purchased during construction is eligible for input credit.
2 Construction will take one year after that Hotel will start. Does that make any difference?
3 Weather. Restaurant purchases will be eligible for input.
4 During the running of the hotel, regular maintenance material will eligible for input.
Input cannot be availed on Goods and/or services for construction of an immovable property whether to be used for personal or business use. Restaurant purchases will be eligible for input. Regular maintenance material will be eligible for input.
thanks, I want to know. Is it that building material, clothing, bed sheets.paints, electrical appliances, furniture etc. Are eligible for input after construction and not during construction.
Is GST on motorcycle, used motorcycle for a business purpose allowed as the credit under GST act.
No, credit cannot be claimed on vehicles used for business purpose.
Is GST ITC can be claimed for the car vehicles purchased for the business transportation purpose?
You can only claim ITC on motor vehicles if it is used in the business for the following purposes
only :
1. Such motor vehicles and conveyances are further supplied i.e. sold
2. Transport of passengers
3. used for imparting training on driving, flying, navigating such vehicle or conveyances
4. Transportation of goods
Is IGST on car insurance, used car for business purpose allowed as credit under GST act.
Yes, you can take credit.
Send me the details of gst
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Can we take an Input tax credit of Bunk beds purchased for employees?
No, ITC not available as per sec 17(5)