Gst input query

No it's credit is blocked under section 17(5)

No credit is inadmissible u/S 17(5) a

Can u explian more

[5] Notwithstanding anything contained in sub-section [1] of Section 16 and subsection [1] of Section 18, input tax credit shall not be available in respect of the following, namely:-

[a] motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons [including the driver], except when they are used for making the following taxable supplies, namely:—

[A] further supply of such vehicles or conveyances ; or

[B] transportation of passengers; or

[C] imparting training on driving, flying, navigating such vehicles or conveyances;


[aa] vessels and aircraft except when they are used––

[i] for making the following taxable supplies, namely:—

[A] further supply of such vessels or aircraft; or

[B] transportation of passengers; or

[C] imparting training on navigating such vessels; or

[D] imparting training on flying such aircraft;

[ii] for transportation of goods;

[ab] services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause [a] or clause [aa]:

Provided that the input tax credit in respect of such services shall be available—

[i] where the motor vehicles, vessels or aircraft referred to in clause [a] or clause [aa] are used for the purposes specified therein;

[ii] where received by a taxable person engaged—

[I] in the manufacture of such motor vehicles, vessels or aircraft; or

[II] in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;