How to Check Ineligible ITC/Block ITC

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This query is : Resolved

Quick Summary

This discussion clarifies how to correctly claim GST Input Tax Credit (ITC). While GSTR-2B shows 'ITC Availability', it's crucial to also check Section 17(5) of the GST Act to ensure the credit isn't blocked. For example, car rental services, even if reflected as available in GSTR-2B, are typically ineligible for ITC.

vivek

vivek (Querist)

16 January 2023 Dear Experts,

Can we take GST ITC as per 2B "ITC Availability" Column ??
My doubt is about Block Credit/Not eligible ITC, if any one don't know about Block ITC so can we take ITC as availability shown in "ITC Availability" Column.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 January 2023 No, check it's not blocked credit and eligible credit and then claim ITC.

vivek

vivek (Querist)

16 January 2023 Thank you sir , i have one example ,please provide your valuable opinion
-: Mr. A provide Car Rental service to XYZ Company @ 27000+GST and same reflected on GSTR-2B with Yes ITC Availability.
So, we have to check section 17(5) instead of "ITC Availability" shown in GSTR-2B

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 January 2023 ITC not available for car rental.
Yes Check section 17(5)

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