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.
Need Unlimited Online GST Return Software!
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. |
I have purchased Computer software for my company. I have taken ITC on the said software. I have treated it as Capital goods also. Can I take depreciation on the amount excluding GST over useful years?
No, either you can claim ITC or charge depreciation both can not be claimed
No your answere wrong, he is asking of depreciation of remaining amount i e basic price of the capital goods , he can claim depreciation on that but not portion of GST , if he claim ITC on capital goods and take deprecaiation excluding GST amount .
As I am a seller on amazon can I claim ITC against tax invoice raised by amazon for its services, handling charges and etc. things
You can extract a report for your sale, from the Report->Payment->Tax Merchant report and give it to your CA. You can take credit of the sale
tax as paid by Amazon for its all components of service fees.
GST credit of gold purchased by the registered person can be availed by such person and if not then on which circumstances GST credit of gold can be availed?
RESPECTED SIR
CAN I CLAIM ITC SALES PROMOTION GIFT ITEMS CROCKERY
No
Can the hospital OP Pharmacy and the roadside OP Pharmacy claim the ITC benefit ? If yes – then for which category of items and under which condition.
And when it comes to the services provided by the hospital, they are exempted with no input tax credit available for the services or input provided to the hospital.
But for the pharmacy section, it will be categorized as the normal business venture and all the GST paid on input and other valuable even including the software part can be accounted for setting off the output tax liability.
My Company has purchased a mobile phone and TV for business use, can we claim ITC for that.
Yes. The mobile phones/ laptops would be covered under the definition of ‘inputs’ as they are used in the course/ furtherance of business and hence, the input tax paid on such goods will be available as an input tax credit.
Can we take the input tax credit on “Office Maintenance Bill” (Plumbing Work in the office building) under the GST act?
No ITC is available for the activities such as construction, reconstruction, renovation, addition, alteration or repair of an immovable property even it is under the furtherance of business as per the law
Input on works contract service can be used to the extent it is not capitalized. here you are making an error .
Yes you can take the ITC of office Building if you do not capitalize such amount means debit the whole expense in p&L account.
SIR,
CAN WE CLAIMED INPUT TX CREDIT GST PURCHASE ON FACTORY BUILDING RENOVATION
In general, the input tax credit is not available for construction, reconstruction, renovation, addition, alteration or repair of an immovable property even when such goods or services or both are used in the course or furtherance of business.
Can we avail input tax credit on GST of the hotel stay foods@18%?
ITC on Outstation Hotel Stays. For businesses, availing accommodation in destinations outside the State where they are registered is common. … When a business avails accommodation service from a hotel, the place of supply will always be ‘the place where the service is provided’, that is, the location of the hotel.
I have taken a hotel on lease for the past 3 years. I have been giving the GST on the lease amount accordingly. Sin due to covid 19 business has been shotdown. Though I was claiming the ITC. Now my question is can I get the refund of ITC.
NO , refund of ITC is availabe, except inverted duty structure.
I am in the hotel industry. If I am purchasing a motor car with a taxi number. Can I claim for a tax credit of GST?
“The Government has taken restricted meaning of the phrase “in respect of” in recent clarification and has clarified that the GST paid on insurance and repair on vehicles is allowed when the vehicle is used for business purpose only”
We are selling 0% exempted and taxable goods every month. We purchased gunny bags in 5% GST rate for our business purpose and we do not sell the gunny bags. can we avail ITC on gunny bags purchases …..
You can avail ITC only for taxable supply of goods.
K.K.singh
Sir started a proprietorship firm for supply of pathological & surgical goods, and I have purchased two computers for maintaining the account & Stock and I also purchase a mobile costing of Rs. 60000/- can be avail the ITC on these Items.
Kindly suggest me
As per CGST Act 2017, if computer or mobile used during the course or in furtherance of business then ITC shall be allowed.
Sir, In Hotel they provided Laundry services. Can we claim ITC?
your question is incomplete, who is providing services to whom if Laundry services used by the hotel for there BEDSHEETS, CURTAINS. ETC then Hotel can avail on accommodation services.
We are doing construction work. we are providing accommodation to our staffs at site location along with the furniture. Can we take ITC on the purchaser of Furniture
No, As per section 17(5) of CGST Act 2017, you are not eligible to claim ITC.
Sir, Can we take GST ITC on Work Compensation Insurance Premium of Construction Work
If insurance is taken to fulfil Government obligation, in this case, ITC available on that policy otherwise ITC Not available.
Sir,
We are an authorized dealer of two-wheeler bikes, We have mistakenly shown some Registered invoice in unregistered invoice column in GSTR 1 so can we amend or not, if we amend then how?
Yes, you can amend it. Just enter zero in an unregistered column and put figures in B to B
SIR, IS GST PAID ON REPAIR OF CAR AVAILABLE FOR INPUT TAX CREDIT OR NOT?
It has now specifically been mentioned in Section 17(5) of the CGST Act (negative list of ITC) that Input tax credit of GST paid on services of insurance, servicing, repair and maintenance of motor vehicles shall not be allowed.
Our director hired a vehicle for business purpose, and the supplier is providing an invoice as per sec 16(2) can we claim the GST input on it?
No, ITC is not available on Motor vehicles
Dear Sir,
We are with our under-construction Hotel Project,
can we are able to take some ITC On like,… ply-wood, electrical material, door material, purchases which are used for the under-construction property (Hotel) Please reply …..
No, ITC is not available.
Can we claim ITC for the purchase of AC repairing items such as primer, Brush etc? Our main work is AC repairing Service.
Yes, as such there is no restriction on such items for claiming ITC.
Can a proprietorship or partnership firm purchase an office for his office use and GST paid on it at the time of purchase? Can firm avail ITC on it?
Please specify whether it is purchased in affordable housing scheme or not and also mention GST rate.
I am planning to construct a hotel. I am paying fees to my architects for services against drawings. They are providing me with IGST bills. Can I avail ITC on the GST bills? In my P/L account I am showing this as expenditure
No, ITC is not available.
Sir, Can we take GST ITC on forex Transaction (service Tax)
Yes, ITC is available.
Can We claim ITC ON SEMINAR FEES PAID UNDER GST
Allowed only service portion of seminar fees.
Can we take ITC on cash counting machine purchased for Business Purpose?
Yes, you can claim ITC.
We have a GST Registered small fire safety business. We have BSNL land line BB phone in co’s name, we paid GST every month for BSNL Bill. Can we claim ITC for BSNL Bill? phone used for business purpose.
Please also let us inform if we purchase materials other than our trade (SAFETY MATERIALS) but use for our business purpose can we claimed ITC?
can we take itc on Generator purchased for Business Purpose?
Yes, you can claim ITC if all the conditions are satisfied.
Sir,
we purchased some eatables, food, clothes from the mall for our personal use from our company debit card, can we put it all ineligible ITC section as per section 75 or ineligible ITC other section?
We are in Air Ticketing, Tour packages business and purchased a Car & Computers/Laptops for office use, Can We claim ITC on the same, if yes under which section, if not then why? please advise
Sir, as I can avail input credit on car insurance, can I claim GST paid showing in GSTR 2 A and which section we claim ITC in form GSTR 3B please explain?
Sir, We are making coffee/tea sales through tea/coffee stall, we purchased KIOSK (Coffee stall) for making coffee / Tea sales, can we claim Input Credit on KIOSK
Since the kiosk Coffee vending machine is an asset, we can claim ITC on purchase of KIOSK machine.
SIR,
OUR BUSINESS IS SUPER STOCKIST IN PHARMACEUTICALS BUSINESS, WE HAVE PURCHASED A CAR USING FOR BUSINESS PURPOSE IN 2016, NOW WE ARE PURCHASED NEW TYRES, CAN WE CLAIM ITC ON PURCHASE OF TYRES.
CAR not eligible for ITC, hence, any subsequent cost for its maintenance also not eligible for ITC.
Yes, no ITC available on maintenance also.
I am working in X company, our head office is registered under GST/LOA form government is there:
1) I am hiring hotels in company payment mode and asked the vendor to charge IGST on the bill being invoice will be done at SEZ office address but vendor denying to charge IGST he insisted for the charge of SGST and CGST, kindly clear what is the compliance and what should be done in this case.
One of car vendor (GST Registered) is charging 0% GST under LUT, he is billing to SEZ, wanted to understand the following :
1. first can car vendor charge 0% GST under LUT, if yes then why?
2. Can the company pay the basic amount, if yes then WHY?
3. Will the company need to pay the government 5% IGST? if yes, then how, as in booking/issuing PO, tax code of 5% is not considered.
request to explain the process of the car on rent used for conveyance /travel of company employee through third party vendor, how and invoice to be done at the address of the company location which is registered under SEZ, please specify the whole process and also explain whether tax credit can be taken or not?
sir, we are in the restaurant field and have GSTIN. We are paying compounding tax. Last month we purchased tables and chairs for our restaurant. can we claim the input tax credit?
If you are paying taxes under composition scheme, then you are not allowed to take ITC on any inputs.
Sir, I run a pathology laboratory and I do have a GST no, can I claim input credit on the reagents and consumable I buy to run my lab.
Can we take ITC on repairs of the motor vehicle, when the vehicle is registered on Company name?
W.e.f. 01.02.2019, ITC on the repair of a motor vehicle is not available if the same is used for transportation of persons and having a seating capacity of up to 13 persons
Can we claim ITC on purchase of bike?
Please mention the usage of the bike (personal or official)
For official use
Our company running for 365 days, canteen is there inside premises, we are paying cylinder bills directly to the gas agency. The gas agency is charging bill with SGST & CGST total percentage of 18% can we claim ITC?
As only food & beverages are kept out from purview of ITC, you can claim itc on gst paid on purchasing of gas cylinder.
You can’t claim the credit on the Gas cylinder as the expense has no relation to business or for the furtherance of business. It’s directly related to the provision of supply of food & beverages to employees.
Dear
I want to know about ineligible ITC – where I show the ineligible ITC in 3B or Annual return