ITC AVAILING ON REIMBURSEMENT OF ROYALTY

Yes you can still claim

Ineligible Items for ITC

ITC cannot be claimed on the following:

Goods and services purchased for personal use

Goods and services exempted from GST

Goods and services used for making exempt supplies

Goods and services used for making supplies of goods and services that are subject to reverse charge

Capital goods used for making exempt

I think as per Mr Raja PM you fall into this category. Sorry about my first answer