Goods or Services or Both on which Input Tax Credit (ITC) shall Not be Available under GST Act. [Section 17(5)] in respect of the following:
1. Motor vehicles and other Conveyances except when they are used—
(i) 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;
(ii) for transportation of goods.
2. The following Supply of Goods or Services or Both:
(i) food and beverages,
(ii) outdoor catering,
(iii) beauty treatment,
(iv) health services,
(v) cosmetic and plastic surgery
However, where an inward supply of above goods or services or both of a particular category is used by a registered person
— for making an outward taxable supply of the same category of goods or services or both or
— as an element of a taxable composite or mixed supply input tax credit shall be available.
Mr. Dust is engaged in providing Beauty Treatment Services. On a particular day, with a view to cater to the demand of large number of customers, he availed the Beauty Treatment Services from Mr. Dirty Accordingly, Mr. Dirty raised an invoice on Mr. Dust for stipulated consideration along with applicable GST. Since in the given case, Beauty Treatment Services have been used by Mr. Dust for making an outward supply of services of the same category of services, he shall be eligible to avail ITC of the Beauty Treatment Services.
3. Membership of a club, health and fitness centre
4. Rent-a-cab, life insurance and health insurance except where—
(A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or
(B) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply.
5. Travel benefits extended to employees on vacation
such as leave or home travel concession.
6. Works contract services when supplied for construction of an immovable property
(other than plant and machinery) except where it is an input service for further supply of works contract service.
7. construction of an immovable property on his own
Goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.
[The expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property.]
8. composition scheme
Goods or services or both on which tax has been paid under the composition scheme
9. non-resident taxable person
Goods or services or both received by a non-resident taxable person except on goods imported by him
10. personal consumption
Goods or services or both used for personal consumption
11. Goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples
12. No credit for any tax paid in accordance with the provisions of sections 74, 129 and 130.
These sections prescribe the provisions relating to tax paid as a result of evasion of taxes, or upon detention of goods or conveyances in transit, or towards redemption of confiscated goods/conveyances.