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Negative list under GST Input Tax credit not available
input tax credit not available under GST negative list

Negative list under GST Input Tax credit not available

Negative list under GST Input Tax credit not available

INPUT TAX CREDIT OF MOTOR VEHICLES

NATURE OF BUSINESS NATURE OF VEHICLE ITC CLAIM
Dealer of Motor Vehicle Any Vehicle Full ITC can be claimed
Passenger Transportation Vehicle used for Passenger Transportation

 

Any Other vehicle

Full ITC can be claimed

 

 

ITC cannot be claimed

Training relating to driving of such vehicle Vehicle used for training

 

Any other Vehicle

Full ITC can be claimed

 

ITC cannot be claimed

Any other business Vehicle used for transportation of goods

 

Any other vehicle

Full ITC can be claimed

 

ITC cannot be claimed

INPUT TAX CREDIT ON OTHER ITEMS

NATURE ITC CLAIM EXCEPTIONS
Food & Beverages ITC cannot be claimed If engaged in similar line of business, then Full ITC can be claimed on these items
Outdoor catering ITC cannot be claimed
Beauty treatment services ITC cannot be claimed
Health services ITC cannot be claimed
Cosmetic and plastic surgery ITC cannot be claimed
Rent a cab service ITC cannot be claimed If engaged in similar line of business or there is mandatory requirement from government to provide such services by employer to employee the full ITC can be claimed on these items
Life Insurance service ITC cannot be claimed
Health Insurance service ITC cannot be claimed
Membership of a club, health & fitness Centre ITC cannot be claimed No exception
LTA benefit extended to employees ITC cannot be claimed No exception
Construction Contract Services for construction of immovable property ITC cannot be claimed If engaged in similar line of business, then Full ITC can be claimed on these items
ITC on goods and services used for self-construction of building cost of which is capitalized in books ITC Cannot be claimed No exception

 

a) ITC is not available for motor vehicles and conveyances except when:

  • The vehicle is used for the supply of other vehicles or conveyances
  • The rule shall not apply if the vehicle is used for transportation of passengers
  • The vehicle is used for imparting training on driving, flying, navigating such vehicle or conveyances
    The vehicle is used for transportation of goods

b) No ITC is available for the supply of following goods or services or both:

  • food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where the category of Inward and outward supply is same or the component belongs to a mixed or composite supply under GST
  • sale of membership in a club, health, fitness center
  • ITC would not available for rent-a-cab, health insurance and life insurance except the following
    any services which are made obligatory for an employer to provide its employee by the Indian Government under any current law in force
  • where the category is same for the inward supply and outward supply or it is a part of the mixed or composite supply
    in the case of travel, benefits extended to employees on vacation such as leave or home travel concession.

c)ITC shall not be available for any work contract services. ITC for the construction of an immovable property cannot be availed, except where the input service is used for further work contract services.

d) No ITC will be provided for materials used in the construction of immovable property of for furtherance of business. ITC will not be available for the goods or services or both provided to a taxable person used in the construction of an immovable property on his own account including when such goods or services or both are used in the course or furtherance of business.

e ) No ITC would be available to the person who has made the payment of tax under composition scheme in GST law.

f) ITC cannot be availed of goods or services or both received by a non-resident taxable person except for any of the goods imported by him.

g) No ITC shall be available for the goods and services or both used for personal consumption and not for business purposes.

h) Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples are not available for claiming ITC under GST.

i) ITC will not be available in the case of any tax paid due to none or short tax payment, excessive refund or ITCutilisedd or availed by the reason of fraud or willful misstatements or suppression of facts or confiscation and seizure of goods.

It is imperative for the companies to make the necessary operational and financial changes for accommodating the above cases of ineligibility of ITC.

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