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. |
I AM DOING OPERATION AND MAINTENANCE OF ROAD SWEEPING MACHINE FOR GOVERNMENT AND MY SERVICES ARE TAX FREE.
CAN C CLAIM ITC ON THE PURCHASE OF CONSUMABLES, ENGINE OILS, FILTERS AND BRUSHES ETC.
No, As the services you have provided is of Tax free nature
No, As the services you have provided is of Tax-free nature
God morning sir/Madam.
I am working in a hospital (Base on Trust – Fully exempted in income tax Act). we purchase hospital equipment for hospital use and account under Fixed Assets. we can claim ITC for the purchase of hospital Equipment
Yes
I am purchases Laptop for office use in a partnership firm let me know can i take GST input in firm
Yes, you can
We have purchased metal panels for our production. Can we claim ITC.
Sir,
We have got Swachh Andhra work to collect door to door waste in Andhra Pradesh, in this connection we purchased auto tippers for this service, can we claim ITC on purchase auto tippers, insurance, auto repairs & maintenance , this is huge investment on this service. This is fully door to door service. Please advice me.
Yes, you can claim ITC if this is used only for the furtherance of your business
I am into business of electronic items such as laptop and mobiles. I have purchased a dishwasher. Can i claim ITC on it. I would be using it in my office.
Yes
can i get itc on AC who use for office use
We are manufacturer of Electric three wheelers loaders and passenger variants. I do get ITC refunds quarterly however before establishing business we had to submit the vehicle for certification at ARAI Pune. Total GST paid on the bill was INR 1,80,000/-. ( Service bill ). My question is can i claim for Refund as we are manufacturers and our consultant has consistently denied that for service bill we cant claim… Need your input…
Please contact to GST practitioner
Can we claim input tax credit on Steel Cupboard purchased (ready made) for our store warehouse.
If it is used for the furtherance of business then yes otherwise not
If it is used for business purpose or furtherance of business then u can claim, if used for personal consumption then u cannot claim it…
I am Exporter but not in SEZ category, but i purchase from all over India and sell abroad, do i claim the GST for car Tyre which is using for business purpose
Yes
Can we claim the below things as ITC.
1. Mobile phone
2. Laptop
3. Computer which are used for business purpose
Please reply, Thanks
If all used for business purpose then only you can claim ITC & if it is commonly used for Business & personal purpose then common credit reversal will be calculated and eligible ITC can be calculated
ITC on purchases related to business and actually used in business is eligible for claim. on plants mentioned in query ITC is eligible.
Please let us know…
Whether ITC on GST paid on Annual Subscription & Membership Fee to News Broadcasters Federation eligible or not.
Thanking you.
Not eligible
PREMIUM PAID BY A PVT LTD COMPANY FOR STOCK INSURANCE …CAN PREMIUM BE USED FOR SET OFF AGAINST GST
No
Yes you can avail input credit of GST paid on stock insurance as it is an expense incurred in furtherance of business. You will have to submit your GSTIN
Correct
Dear Sir,
We have purchased bolero vehicle for business purpose, shall we claim itc for the same vehicles
Yes
if you are a transporter or travel service provider then you must claim.
otherwise not, even you purchase it for business or personal, etc.
Can a partnership firm eligible to claim GST input if the purchase bill is in the name of a partner & GST number of the firm is mentioned in the bill.
Yes
Sir asset in name of partner and expense paid by partnership firm for business use
Can firm claim GST credit if a bill in name of partner and GST no of firm
As per which Act/ Rule?
yes
Car purchased for business purpose in company name can I take GST input
Yes
We are supplying good to our clients GST rate is 12%
and also we are paying rent, digital marketing charges to our suppliers they are charging GST of 18% . is this ITC can be claimable? after ITC only we need to generate the challans? pls guide
Dear Sir, please consult GST practitioner as in this case rate of tax is different, so whether is claimable or not they will assist you better
Sir, CAN I GST CLAIM ON PRINTER CARTAGE REFILLING WHICH IS USED IN BUSINESS PURPOSE
Yes
Can we claim ITC on the cement used for making foundation and structural support to plant and machinery?
Yes
Hi, I am going to install a fire alarm system in my hotel. Can I claim ITC on the GST amount to be paid to the contractor with his GST registered in the same state?
Yes, if it is used wholly for business purpose
Sir,
I am running a restaurant under Regular scheme and has to pay 5% GST without availing ITC. As such, while filing GST 3B, is it necessary to mention the GST paid on purchase bills in Table 4 – A – 5 ( all other ITC ) and subsequently reverse the same under ” ineligible ITC- Sec.17(5) ” or can he simply skip the Table 4, as I am not supposed to avail ITC. Kindly advice.
CAN I CLAIM GST ITC ON GAS FOR HOTEL USED FOR RESTAURANT?
Yes
I have STARTED A NEW COMPANY, GST APPLIED BUT GST NUMBER NOT RECEIVED, SHALL I TAKE INPUT CREDIT ON MY PURCHASE AND SHALL I COLLECT GST FROM SALES.
Sir, when you do not get GST no. then how could you take ITC for the same
As per new rule only those ITC is eligible for credit which are reflecting in your gstr2a.
As per the new rule, only those ITC is eligible for credit which is reflecting in your gstr2A up to cut off date
My client has purchased from his GST registered vendor in March. However, the vendor has not been filing his returns GST3B since March 2020. Now he updating GST3B by including my invoices also. However, I have claimed this Input in March itself.
After updating his gst3b, Can I get Input?
Hello sir
Can a proprietor get GST input credit on the purchase of an apple mobile ear phone from e-commerce, the Gst no is mentioned on the invoice received and IGST is 2742
Yes
Thank you sir
Sim Must Be Post Paid and as in income tax 25% disallowed for the personal use and as per sec 17-5 supply which are used for personal use ITC must not be taken and business hrs are only 9 to 8 and after that is used for personal use so 40% allowed and 60% disallowed
Can We take GST Input on watches
Yes, if it is related to your concerned business
sir,
My question is that my client is during computer job work from outside of India, the purchase of a computer’s itc is applicable in return.
Please specify the question correctly
I am starting a retail brand outlet. can I claim ITC in respect of following-
1. painting work at the store
2. tuffen glass installed
3. hangers purchased
4. false ceiling
5. electrical wiring
6. led bulbs, fans, etc
7. mirrors installed in trial rooms
8. pillar boxing
can u please confirm items as listed above
Sir, Please refer Blocked ITC list mentioned under sec 17(5) of CGST act 2017
i have same questions
please confirm.
Are the sweet stalls paying 5% Output Tax on Registered and Unregistered sales are eligible to take ITC available in their 2A in GST Website (updated by the Supplier)?
Yes
I am an interstate purchaser and used form 27C in my Invoice. Whether will I claim ITC on the GST I paid?
Please contact to GST practitioner
A hotel charging GST @ 12% as the rent is below Rs 7500/-
Whether the hotel is eligible for Input credit on the purchase of goods for hotel
means ITC is available for hotel
Dear Sir,
Whether ITC could be availed on Vendor providing Milk and Tea Services at Factories, Guest House Groceries items purchased, Drinking water and Cabs/Taxi Service used for business visits/business purpose, etc.
Yes
Sir
we have a manufacturing unit & we open new cc account in bank & Bank raised loan processing, legal fees bill including GST amt. Can we claim this gst amt for manufacturing business?
“According to specific provisions under GST law, a statement issued by a bank can be treated as a tax invoice. Accordingly, you should be eligible to claim the input tax credit, based on a statement issued by the bank, as long as it contains all the prescribed particulars, including your GST registration number”
12.07.2020
Sir.,
Can we take GST ITC on Security service charges as per below actual bill working:
Billno.1/30.04.2020
Security service charges (2 security for office purpose) Rs.10000/-(Taxable value)
Add:CGST 9% 900
SGST 9% 900
Total bill amount 11800
(NB: GST amount is included in the above bill and not on reverse charge mechnism)
Please reply
Thanks and regards
K.RENGARAJAN
Yes, the mechanism is correct
Can I claim an ITC on GST paid for the paper plate making machine
If it is used for business purpose then only you can claim the same
yes, one can claim INPUT TAX CREDIT on the capital goods.
Yes
One can claim the input tax credit on the capital goods which is not for business use like use as fixed assets in the trust name in the invoice. Trust is registered under GSTIN. Actually Air conditioner use in the Guest House in which guest stayed.
It is treated as ineligible ITC as this is used for non-business purpose
Can we claim ITC on the cement used for making foundation and structural support to plant and machinery?
A -class eng, certificate is required for proper ITC Claim on foundation
Respected Sir / Madam,
Is GST on LFR (License Fee Recovery) charged on MS (Petrol) & HSD (Diesel) will be available for ITC.
dear sir
my business is handloom item but I purchase electricity item like fan led light
for office use can I apply itc this item
Yes
Hai sir,
We have a quarry business and we have own tippers for supply of material, and we are paying insurance for those vehicle, pls. advise whether we are eligible for gst input on insurance premium paid
No Sir, you can not claim ITC on tax paid on Insurance Premium.
IS ITC AVAILABLE ON FLEX BODY TUNNEL FRAME?
“This GST paid can be claimed as a credit in the same way as inputs. However, if you claim depreciation on the GST paid while purchasing the capital asset, you cannot claim the input tax credit.”
A Travel agent who charges GST @5% without claiming ITC on Input Services. Can he claim ITC on Computer Purchased in his office and ITC on Audit Fee as they are not directly related to the output supply? Please quote the relevant provisions of ITC.
No