Section 17(5) of the CGST Act, 2017

Amit Harkhani , Last updated: 10 October 2022  
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ITC cannot be available in respect of the following (Section 17(5) of the CGST Act, 2017)

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MOTOR VEHICLES

As per Section 2(76) of CGST Act, 2017 Motor vehicle shall have the same meaning as assigned to it in clause (28) of section 2 of the Motor Vehicles Act, 1988.

As per Section 2(28) of the Motor Vehicles Act, 1988 Motor Vehicles or Vehicles means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding twenty-five cubic centimetres.

Section 17(5) of the CGST Act, 2017

MOTOR VEHICLES

Motor Vehicles (Those which are used upon Road)

Includes

  • Four Wheelers or More
  • Three Wheelers or Less having Engine Capacity >25CC
  • Chassis (Frame)

Exclude

  • Three Wheelers of less having engine capacity <25CC
  • Rail
  • Specifically used in factory or enclosed premises

Motor Vehicles

Motor Vehicle for transportation of PERSONS (Including Services of general insurance, Servicing, Repairs & Maintenance)

Motor Vehicle for transportation of PERSONS

Vessels & Aircraft (Including Services of general insurance, Servicing, Repairs & Maintenance)

Vessels & Aircraft (Including Services of general insurance, Servicing, Repairs & Maintenance)

Following supply of Goods or Service or both

Following supply of Goods or Service or both

Membership of Following

  • Club
  • Health & Fitness Centre
 

Travel benefits to employees on vacation such as leave or home travel concession.

 
   

ITC Not Available

ITC Available

 

If It is obligatory for an employee to provide the same to its employees under any law for the time being in force

 
 
 
 
 
 
 

Works Contract Service for Construction (Re-Construction, Renovation, Repair, Addition, Alternation) (TO THE EXTENT OF CAPITALISATION)

Works Contract Service for Construction of

 
   

Plant & Machinery

Immovable Property

 
       

ITC Available

ITC Not Available

ITC Available

 

If it is an input service for further supply of works contract service

 
 
 

Works Contract:  As per Section 2(119) of CGST Act, 2017“works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair,
maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.

Plant & Machinery: As per Explanation of Section 17(5) “plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes,
• Land, building or any other civil structures.
• Telecommunication towers.
• Pipelines laid outside the factory premises.

Goods or Service or both received by a taxable person for Construction (Re-Construction, Renovation, Repair, Addition, Alternation) (TO THE EXTENT OF CAPITALISATION) (FOR SELF USE)

Goods or Service or both received by a taxable person for Construction of

   
                           

Plant & Machinery

Immovable Property

   
                           

ITC Available

Use for Personal Purpose

Use for Business Purpose

   
   
   
   
                             
           

ITC not Available

     

Composite Dealer

Goods or Service or both on which tax has been paid under section 10.

Non-Resident Taxable Person

Goods or Service or both received by Non-Resident Taxable Person (Except on Goods Imported by him).

Personal Consumption

Goods or Service or both used for personal consumption.

Gift or free sample

Goods lost, stolen, destroyed, written off or disposal of by way of gift or free sample.

Sections

Any tax paid in accordance with the provisions of Sections

  • 74: Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts.
  • 129: Detention, seizure and release of goods and conveyance in transit.
  • 130: Confiscation of goods or conveyance and levy of penalty.

Published by

Amit Harkhani
(CA in Practice)
Category GST   Report

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