Credit | 1st to be utilized for payment of | Balance if any |
CGST | CGST | IGST |
IGST | IGST | CGST and then SGST/UTGST |
SGST/UTGST | SGST/UTGST | IGST |
500 50 550 550 nil
500 25 525 500 25 Under what situations one CAN NOT claim Input Tax Credit (ITC)?
| Items | Exceptions |
1 | Credit on Motor vehicles and other conveyances purchased or | Taxable person is in the business of sale and purchase of new or second-hand motor vehicle i.e Dealer of the motor vehicle or Providing the service of transportation of passengers(Ola, Uber)/ goods(GTA) or The motor vehicle is used by the driving school.
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2 | Supply of food and beverages, outdoor catering, beauty treatment, health service and cosmetic and plastic surgery
| An inward supply of aforesaid goods or services or both is used by a registered person for making an |
3 | Rent-a-cab, Life and health insurance
| The Government notifies the services which are obligatory for an employer to provide to its employees |
4 | Travel benefit to employees as leave or home travel concession Example – Tour arranged for the employee
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5 | Works contract service for construction of immovable property
| Works contractor uses the service of another contractor, then the former can claim the ITC.
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6 | Construction of immovable property which includes reconstruction, renovation, additions or repairs. Goods/services used for construction on his own account or even when it is used for the furtherance of business. Example- Mr.A constructing his own office, ITC on goods or services used for the construction of the office cannot be claimed by Mr.A
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7 | ITC will not be available for the goods/services received by the non-resident taxable person.
| In case if Non-resident taxable person imports goods or service, then ITC will be allowed.
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8 | Goods/services received for personal consumption
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9 | Goods stolen /destroyed/ written off/distributed as a gift or free samples
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10 | Dealer under composition scheme- Neither the dealer nor the receiver of goods from the dealer can claim ITC
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11 | Membership in a club, Health, and Fitness centre Example- Company paying the gym fees for its employees
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