Rajagopal K
Quick Summary
Sub-section (1): Business and Non-Business Use When goods or services are used partly for business and partly for other purposes, ITC shall be restricted to the portion attributable to business use only. Sub-section (2): Taxable vs Exempt Supplies When goods or services are used: Partly for ta
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
When goods or services are used partly for business and partly for other purposes, the Input Tax Credit (ITC) is restricted only to the portion attributable to business use.
If goods or services are used partly for taxable supplies (including zero-rated) and partly for exempt supplies, the ITC is restricted to the portion used for taxable and zero-rated supplies.
Yes, banks, financial institutions, and NBFCs can either follow the standard apportionment rules or claim 50% of eligible ITC each month, with the remainder lapsing. This option, once chosen, cannot be withdrawn during the financial year.
ITC is generally blocked for motor vehicles with a seating capacity of 13 or fewer (including the driver), unless they are used for further supply, passenger transportation, or driving training.
ITC for general insurance, servicing, repair, and maintenance of vehicles, vessels, and aircraft is blocked, except when these are used for specific business purposes like further supply, passenger transport, or if received by a manufacturer or insurer of these items.
ITC is generally blocked for food and beverages, outdoor catering, beauty treatments, health services, cosmetic/plastic surgery, and membership of clubs/health centres, unless used for outward supply of the same category or as part of a taxable composite/mixed supply.
CAclubindia
