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ITEMS OF WHICH INPUT TAX CREDIT (ITC) IS NOT ALLOWABLE UNDER GST
1) Motor Vehicles and conveyances except the below cases:-
a. Such motor vehicles and conveyances are further supplied i.e. for sale
b. Transport of passengers.
c. Used for imparting training on driving, flying, navigating such vehicle or conveyances.
d. Transportation of goods.
2) Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery. BUT if the goods and/or services are taken to deliver the same category of services or as a part of a composite supply, credit will be available.
Example: Mr. Dev purchases cosmetic cream to supply it to a customer, the credit of ITC paid on purchases will be allowed.
3) Sale of membership in a club, health, fitness center.
4) Rent-a-cab, health insurance and life insurance except the following:-
a. Government makes it obligatory for employers to provide it to its employees.
b. Goods and/or services are taken to deliver the same category of services or as a part of a composite supply, credit will be available
Example: Mr. Dev takes the service of rent-a-cab to supply to Mr. Manoj, a customer, the credit of ITC paid on purchases will be allowed.
5) Travel benefits extended to employees on vacation such as leave or home travel concession.
6) Works contract service for construction of an immovable property(except plant & machinery or for providing further supply of works contract service).
7) Goods and/or services for construction of an immovable property whether to be used for personal or business use.
8) Goods and/or services where tax has been paid under composition scheme.
9) Goods and/or services used for personal use.
10) Goods or services or both received by a non-resident taxable person except for any of the goods imported by him.
11) ITC will not be available in the case of any tax paid due to non payment or short tax payment, excessive refund or ITC utilized or availed by the reason of fraud or willful misstatements or suppression of facts or confiscation or seizure of goods.
12) Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples.