List of expenses on which itc can be claimed for interstate expenses

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Daya

Daya (Querist)
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31 December 2024 Please reply
List of expenses on which itc can be claimed for interstate expenses

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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31 December 2024 Categories of Interstate Expenses Where ITC Cannot Be Claimed
Motor Vehicle Expenses:
ITC is not available for services related to general insurance, servicing, repair, and maintenance of motor vehicles, vessels, or aircraft. This applies unless the vehicle is used for specific business purposes such as transportation of goods or passengers.
Food and Beverages:
ITC cannot be claimed on expenses for food and beverages, outdoor catering, or similar services. For example, if a company hosts an employee party, it cannot claim ITC on the food served.
Membership Fees:
Membership fees for gyms, clubs, or fitness centers are not eligible for ITC. This includes any expenses incurred by employees for club memberships.
Insurance Services:
ITC is not available for health insurance and life insurance premiums paid by businesses unless mandated by law for employee benefits.
Travel Expenses:
Expenses related to travel benefits provided to employees for personal vacations or leave travel concessions are not eligible for ITC. However, travel expenses incurred for business purposes can be claimed.
Works Contract Services:
ITC cannot be claimed on works contract services related to the construction of immovable property unless the input service is used in further works contracts.
Personal Use Expenses:
Any GST paid on goods and services used for personal needs is not eligible for ITC. If a good is used partially for business and partially for personal use, only the portion attributable to business use may be claimed.
Exempt Supplies:
Inputs used in the production of exempt goods (which are already subject to 0% GST) cannot have their associated GST claimed as ITC.

All other business related expenses other than stated above are generally eligible for ITC claim.

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