BLOCKED CREDIT VS S. 17(1)

This discussion clarifies the rules around Input Tax Credit (ITC) concerning blocked credits and Section 17(1) of the CGST Act. While ITC is generally disallowed for goods or services used for personal purposes, Section 17(1) allows for proportionate ITC on capital goods used for both business and non-business activities. The key distinction lies in the nature of the use: personal use always results in disallowed ITC, whereas mixed-use allows for a proportional claim.