Block Credit Under GST (Sec 17(5) of CGST Act, 2017)

Hello Readers, So today we will discuss about block credit in GST.

As per Section 17(5) of CGST Act,2017, Following are the block credit on which Input Tax credit cannot be availed:-

1.?Purchase of Motor Vehicle designed to carry passenger where seating capacity including driver upto 13. However, if it is purchased for further sale or transportation of passenger on some consideration or for training of Driving then in that case ITC has been allowed.

?

2.?Purchase of Vessel/ Aircraft to carry passenger. However, if it is purchased for further sale or transportation of passenger on some consideration or for training of Driving then in that case ITC has been allowed.

?

3.?General Insurance or Repair & Maintenance of Motor vehicle or Aircraft/Vessel on which ITC has not been allowed.

?

4.?Food & Beverages, Outdoor Catering, Health Services, Beauty Tretment, Cosmetic/Plastic Surgery, Renting/Leasing/Hiring of motor vehicle or Vessel/Aircraft unless ITC allowed on such Motor Vehicle or Vessel/Aircraft. However, ITC has been allowed if these services taken for further supply.

?

5.?Membership of club/health/ fitness Centre.

?

6.?Travel Benefits to employees on vocation.

?·?However ITC has been Allowed on Point 4, 5, 6 if it has been provided to employees under Statutory Obligation.

?

7.?Tax Paid on Inward Supply by Composition Supplier or for Personal Consumption.

?

8.?Goods & Services used for CSR Activities.

?

9.?Tax Paid as per Sec 74,129,130 (Sec 74: Payment in Case of Fraud, Sec 129: Penalty in case of Detention, Seizure and Release of Goods and Conveyance in Transit, Sec 130: Penalty in case of Confiscation of Goods)

?

10.?Work Contract Service or goods & services for Self Construction of Immovable Properties. However, ITC has been allowed in case of Plant & Machinery or Cost has been charged in P&L (i.e. on Repair & Maintenance of Immovable Properties)

?

11.?In case of Goods provided as Free Sample or goods has been Lost/Destroyed/Stolen then ITC has not been allowed.

?

12.?In Case of Non Resident Taxable Person ITC has not been allowed on Purchase of Goods & Services in India for further sale as well as Import of Services. In simple words ITC has been allowed only on Import of Goods for further sale.

?

Thank you everyone for reading these post. I hope it’s helpful for you. For any Query please comment on post.

Please Follow for such more posts.