List in which Input tax credit in GST cannot be availed

Input tax credit in GST shall not be available in respect of the following:

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 Input tax credit in GST shall not be available in respect of the following:

 

  • Supply of goods or services from the “composite dealer”.
  • Goods or services or both used for personal consumption
  • Goods stolen ,lost, destroyed, written off,
  • Goods given as gift ,sample
  • Membership of a club, health and fitness centre.
  • Motor vehicles and other conveyance for the supply of goods or services, however there are certain exceptions :

When motor vehicles and other conveyance are used for:

  1. Further supply of such vehicles or conveyances or
  2. Transportation of passengers or goods or
  3. Imparting training on driving, flying , navigating such vehicles or conveyances
  • Travel benefit extended to employees on vacation such as leave or home travel concession.
  • Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery. However input tax credit is allowed if these are used 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.
  • Rent-a-cab, life insurance and health insurance, but if the government notifies services which are obligatory for an employer to provide to its employees under any law for the time being in force or such inward supply of goods or services or both is used for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply than input tax credit is allowed.
  • Works contract services when supplied for construction of an immovable property except where it is an input service for further supply of works contract service or used for plant and machinery
  • Goods or services or both received by a taxable person for 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 except used for Plant and machinery
  • Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilized by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax.
  • Any tax paid due to confiscation of goods or conveyances due to following reason:-
  1. supplies or receives any goods in contravention of CGST Act or  rules made thereunder with intent to evade payment of tax
  2. does not account for any goods on which he is liable to pay tax; or
  3. supplies any goods liable to tax without having applied for registration
  4. contravenes any of the provisions of CGST Act or  rules made thereunder with intent to evade payment of tax
  5. uses any conveyance as a means of transport for carriage of goods in contravention of CGST Act or  rules made thereunder.

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