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
Nice..
Thanks
thanks