Dear ecperts pls clarify.
What is the meaning of this which is prescribed under Sec17 blocked credits. whether it is eligible or not
[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]
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Sec 17 block r claim?
Replies (1)
Hello,
ITC is admissible only in respect of supplies taken for business purposes. Thus supplies received for personal purposes are blocked. Such goods being not used for providing taxable supplies , the ITC thereon is blocked u/s 17(5).
Further, CBIC has from 9 October 2019 notified that only 20% of ITC available in GSTR-2A can be claimed as provisional ITC in GSTR-3B. It means the amount of ITC reported in GSTR-3B from 9 October 2019 will be a total of Actual ITC in GSTR-2A and provisional ITC being 20% of actual ITC in GSTR-2A. Hence, matching purchase register or expense ledger with GSTR-2A becomes crucial.
Therefore you can't use these credit, even if it is showing in your GSTR2A.
ITC is admissible only in respect of supplies taken for business purposes. Thus supplies received for personal purposes are blocked. Such goods being not used for providing taxable supplies , the ITC thereon is blocked u/s 17(5).
Further, CBIC has from 9 October 2019 notified that only 20% of ITC available in GSTR-2A can be claimed as provisional ITC in GSTR-3B. It means the amount of ITC reported in GSTR-3B from 9 October 2019 will be a total of Actual ITC in GSTR-2A and provisional ITC being 20% of actual ITC in GSTR-2A. Hence, matching purchase register or expense ledger with GSTR-2A becomes crucial.
Therefore you can't use these credit, even if it is showing in your GSTR2A.
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