In following cases Input tax credit isgenerally not available to registered person but available to registered person in specific circumstances:

Sr. No. Type of goods/ Service ITC Availability
1. Goods or service or both partially used for business ITC restricted to amount attributable to business purpose.
2. Goods or service or both partially used for

–          Taxable supply ( inc. zero rated supply) or

–          Under IGST

 AND

–          Partly for exempted supply

 

ITC restricted to amount attributable to Taxable supply.
3. Motor Vehicles & Other Conveyances ITC available when such goods & service used for making taxable supply of :

Ø  Supply of Vehicle or conveyance ( E.g.Sharma Hyudai Pvt Ltd.)

Ø  Transportation of Passenger ( E.g. – Patel Travels)

Ø  Imparting training on driving, flying, navigating such vehicles or conveyances (E.g. Patel Driving School)

Ø  Transportation of Goods.

4.  Food & beverages ITC available when Goods or service or both 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.
5. Outdoor catering service
6. Health Service
7. Plastic Surgery
8. membership of a club ITC not available.
9. health and fitness centre ITC not available.
10. Rent a cab Ø  Obligatory for employer to provide to employee as per gov. notification

Ø   ITC available when Goods or service or both 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.

11. Life Insurance
12. Health Insurance
13. travel benefits extended to employees on vacation such as leave orhome travel concession ITC not available
14. works contract services for construction of an immovable

property (other than plant and machinery)

ITC available when it is input service for further Work contract service.
 

15.

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 ITC not available even if it is used for in the course or furtherance of business.

 

 

Regards

CA Vipul K Soni

 

19+

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