Blocked Credit in GST with examples



Quick Summary
Under GST, Input Tax Credit (ITC) is generally allowed for goods and services used in business. However, Section 17(5) outlines specific exceptions where ITC is blocked, even if the items are used for business purposes. This includes services for personal consumption, those leading to immovable property, telecommunication towers, pipelines outside factory premises, and taxes paid due to evasion. There are also restrictions on ITC for motor vehicles, vessels, aircraft, and certain services like food, beverages, and club memberships, with specific exceptions for statutory obligations or further taxable supplies.

In GST, the government stated a taxpayer can avail ITC of all those inputs of goods and services which are used for supply of goods and/or services is allowed under GST. But there is an exception list of items which are stated in section 17(5).So, for all professionals knowledge the items stated in
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