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. |
Whether GST paid on licence fee for undertaking catering service in trains can be claimed as ITC.
Whether a licencee collect tax at different tax rate for supply of taxable goods in trains or in platforms
Whether ITC can be claimed by the licencee on purchase of goods for supply in trains
I have received commercial rent income and I pay the professional fee to CA can I claim input credit for professional fees which are charged by the CA? I have only commercial rental income.
Yes, you can claim it under RCM
Hi,
I have an OPC to provide software services.
Just wanted to know if I can claim tax credits for the below things
1. Office furniture (desk/chair etc.)
2. Electrical equipment (wifi/printer)
3. Laptops/tablets/Mobiles/Desktop screens/Computer Accessories
If these equipment are used for furtherance of business then you can claim the same otherwise not
if we are property owner and we buy spectacle for own use the buyer register in GST.
So can we take input from buy spectacles in gst.
No
SIR,
WOULD REQUEST PLEAE ARRANGE TO PROVIDE THAT ITC WILL BE APPLICABLE ON CANTEEN SERVICES PROVED BY EMPLOYER TO EMPLOYEE OR NOT…?
“Please consult GST practitioner”
Sir i want to know i have a scrap business for inverter batteries. i collect all used inverter batteries scrap from various shops & sell the scrap to the inverter batteries manufacturers. i need to generate eway bill or any other challan to generate
Yes, if Invoice value of scrap exceeds the prescribed limit
can we take input tax credit of invoice of chartered accountant?
Yes but under RCM
Hello,
I work as software professional, and provide consultancy to my clients. What is the ITC valid list for me?
Thanks
can i claim input credit of Stock insurance policy which i had on our raw material ?
Yes
Whether the recipient of goods has to reverse proportionate Input ITC if even the supplier of goods has not reduced his Output Tax Liability….thanks
Yes
I am solo proprietor and work in filed of electrical and maintenance services for which i regularly purchase hydraulic oils to supply our client is it right practice to do and if yes then can i clime ITC
Yes, as this is used for furtherance of your business you can claim ITC too
We have purchase of Engine Oil and Hair Oil used for Manufacturing of Paper Products machines can i elgible GST input, Kindly Help us…
Yes
Can a Company with an aggregate turnover of above 20 Crores, claim ITC on payment made to law firm for legal services?
Yes
Sir, Can I take Input on cement & saria on the basis of High Court Judgement on Safari Retreats Pvt Ltd.
I am constructing Hotel.
we are a contractor operation of NH and we procure uniforms for our staff with 5% GST. My client reimburses the uniform and supply of manpower (which attract 18% GST) amount along with 18% GST.
Hence my client asked us to raise the Invoice to deduct 5% GST from the Uniform since it attracts double taxation.
Kindly suggest how we add uniform material along with manpower supply in GST format
You can raise an invoice with 5% GST for the uniform & 18% GST for manpower, client can claim ITC for 5% GST paid on the Uniform in their GSTR 3B. For more clarification kindly consult the same with the GST practitioner.
I am purchasing GIDC ( GUJARAT INDUSTRIAL DEV.CORP. ) INDUSTRIAL PROPERTY . GIDC WILL TRASFER LEASE CONTRACT AND EARLIER OWNER SELL TO ME LEASE CONTRACT . GIDC ALLOTED 99 YEARS LEASE AGREEMENT WITH EARLIER OWNER FROM WHOM I AM PURCHASING .
CAN SELLERS CHARGE GSTN ON ME ?? HOW MUCH ?? CAN I CLAIM ITC ?
“Please consult to GST practitioner”
Can u please give a clear explanation on GST implication on SEZ vendors under GST?? with example.?
Please consult the GST practitioner
Can we claim input tax on labor & material purchased for partition work for our office interiors?
Yes, as this expense is used for business purposes
Will this not contradict item 7 the the above table?
Works contract services when supplied for the construction of an immovable property
Govt of India organization under autonomous Can claim the below things as ITC
1. AMC on Manpower, housekeeping , and other Building Maintenance work
2. purchase of stationary items for official purpose
3. other Office equipment which are used for official purpose
Please reply, Thanks
I have a small business (Inc) for which we rec’d gov’t funding for the purchase of a tractor. The tractor is registered in my personal name for loan/financing purposes. Can the business claim the GST paid on this equipment (tractor is <60hp) hence GST was paid on purchase. Currently trying to determine if it can be included in the ITCs for my Q4 GST return. Tks!
Please consult this with GST Practitioner
Can we claim INPUT Credit on Electrical items, Transformer Repairs, Generator Repairs, and Company cars Repairs?
No
Can Input Credit(GST/ITC) be availed by a Consultant( Proorietory Firm) for Hosting large Business/Party Gathering in 05 star hotel.
“Please consult the GST practitioner”
I am a Scrap Dealer and i have purchased cloths can i claim GST on those cloths
If Purchased clothes are relatable to scrap business then yes or not
sir,
I am working in a guest house/hotel service . we can claim ITC for the purchase of guest house material. just like cctv camera, led tv, ac, etc.
Yes, but can not claim depreciation for the same asset class
we provide security services ….so can we take ITC on our tds return accounting charges & Audit bills
Can you please elaborate on the type of security services you have provided
Sir, can we claim ITC on professional services
No
Please let us know…
I have doubt on RCM Charges My company to be paid Rs.20000 but not paid for the FY 2020-21 but they paid that amount of Rs.20000 in FY 2021-22. how to Show in GSTR-9
Can I show it in Table 10 or Table 4?
Thanking You
It should be shown in Table 10
Please let us know…
Whether ITC on GST paid on Renewal & Subscription Fee to Indian monument Manufacturers association charges eligible or not.
Thanking you.
No
we are the dealer of led light selling, we have purchase tyres for our goods vehicle, shall we claim gst input
No
Why ITC should not be claimed.? Tyres bought for business vehicle..
Please read point no. 4 for the same
No
when I was visited our retailers for business development on that day I stayed hotel, shall i claim input gst
Yes
thanks sir,
Dear Sir,
Excellent article.
Can you please confirm if Input Tax Credit can be claimed on fuel (diesel) used for a project?
Thanks in advance.
Regards
No, ITC is not available on fuel (diesel) or petrol, shall not be treated as an input for any purpose whatsoever
If purchases made by a company for furtherance of business by providing Formal Suits ( Price above Rs 50,000), wearable accessories like watches ( Price above Rs 50,000 ) etc to it employee or employees. Can ITC be claimed against the above scenario
Yes, but please also consult with the GST practitioner
Dear Sir,
Can we take input on raw/packing materials purchased, wherein the Finished goods are exempt .
no
Sir,
Can we avail Input on purchase of wooden pallets. These are using at our Factory for storing the Raw Materials.
Awaiting for your reply.
Regards
Dear sir, Wooden pallets do not aid in the furtherance of business, Hence ITC is not available in this respect. For more details kindly contact to GST practitioner for the same
Sir,
We purchased a Laptop on our Corporate Office name and it is a Granite Manufacturing company. Is it eligible to take Input Credit on the same??
Yes
Yes. You may avail Input credit of GST.