CA Shiwali Dagar
Quick Summary
Section 17(5)(a) Section 17(5)(a) of the Central Goods and Services Tax (CGST) Act, 2017, outlines specific scenarios where Input Tax Credit (ITC) is restricted, commonly referred to as "blocked credits." According to Section 17(5)(a), ITC is not available on these goods or services: 1) Clause (
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FAQ :
Blocked credit refers to Input Tax Credit (ITC) that is restricted or not available under Section 17(5) of the CGST Act, 2017, for certain goods and services.
Yes, ITC on motor vehicles for transporting persons (seating capacity not exceeding 13) is generally blocked, except when used for making specific taxable supplies like further supply of vehicles, passenger transport, or driving training.
Services like general servicing, repair, and maintenance of motor vehicles, vessels, or aircraft are blocked unless the taxable person is involved in manufacturing them or providing insurance for them.
Yes, ITC is generally not available on food and beverages, outdoor catering, beauty treatment, health services, and cosmetic/plastic surgery, with exceptions for specific business uses or if they are part of a taxable composite supply.
ITC is blocked for work contract services when supplied for the construction of immovable property, unless it's an input service for a further supply of a works contract.
No, ITC is not available for goods and services that are used for personal consumption.
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