Service availed ITC query

Our client making fabrication stall for his vendor.and client taken services for vendor stall promotion and paid gst to service provider can our client take ITC of service availed?

Replies (3)
Quick Summary
ITC on stall fabrication and promotional services can generally be claimed if expenses are incurred for business promotion and taxable supplies. ITC may be blocked under Section 17(5) if treated as gift, personal use or related to immovable property construction.

Yes, ITC can be availed by the client on GST paid for stall fabrication and promotional services, PROVIDED the expense is incurred in the course or furtherance of business, is not a gift, and is supported by contractual/commercial documentation.

ITC on stall fabrication and promotional services is generally available, provided the expenses are incurred in the course or furtherance of business and the supplier has filed their GSTR-1 correctly so the invoice shows up in your GSTR-2B. The key section to watch is 17(5), which blocks ITC on certain categories: if goods or services are used primarily for personal consumption or if the invoice is for a gift, ITC gets blocked. Trade exhibition and B2B promotional spends typically qualify because they directly support taxable supplies. One nuance: if the stall involves construction of an immovable fixture (not temporary), Section 17(5)(c) blocks ITC on that portion. For a detailed breakdown of what qualifies and what gets disallowed, this [GST ITC eligibility guide for business expenses](https://taxgarden.in/blog/gst-itc-startups-saas-cloud-digital-marketing-india-2026) covers marketing and promotional categories in detail.

ITC on services is allowed when four Section 16 conditions are met AND the service is not blocked under Section 17(5).

FOUR CONDITIONS (all must apply):
1. Valid tax invoice with supplier GSTIN, your GSTIN, SAC, and GST amount
2. Service used in the course or furtherance of business
3. Supplier has paid GST to the government (verify in GSTR-2B for the period)
4. Service received, or payment made within 180 days of the invoice date

SECTION 17(5) BLOCKED SERVICES where ITC is NOT allowed:
- Outdoor catering, food and beverages
- Health club and fitness memberships
- Works contract for construction of immovable property (not plant or machinery)
- Motor vehicles for personal transport (unless you are in the transport business)
- Employee travel benefits like LTA

If the service you are asking about is not in the blocked list and all four conditions above are met, ITC can be claimed. Mention the specific service if you want a direct answer on whether it qualifies.

For the complete blocked-input list with examples, this [GST ITC guide](https://taxgarden.in/blog/gst-itc-startups-saas-cloud-digital-marketing-india-2026) covers common service categories for businesses.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details