Credit of following Inward supply of goods or services or both not eligible as Input tax Credit
- Motor Vehicle and Other Conveyance
except used for
- Taxable supply of such Vehicle or Conveyance
- Taxable Supply of Transportation of Passengers
- Taxable supply by way of Imparting, training, on driving, flying, navigating such vehicle or conveyance
- For Transportation of Goods
- Following Supply except used for
making taxable outward supply or an element of a composite or mixed
supply:-
- Food and Beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery
- Rent-a-cab, life insurance or health insurance (except statutorily required)
- Membership of Club, health and fitness centre.
- Travel benefits extended to employee on vacation such as leave or home travel concession.
- Works contract services (composite service of material and labour) when supplied for construction of an immovable property (Other than Plant and Machinery) except when same is used for further supply of Works contract service.
- Goods and services or both received by a taxable person for construction of an Immovable Property (Other than Plant & Machinery) on his own account. Construction includes repairs and renovation capitalised in accounts.
- Supply on which tax is paid under composition scheme.
- Supplies received by a non –resident taxable person except goods imported.
- Supplies used for personal consumption.
- Goods lost, stolen, destroyed, written off or disposed-off by way of gift or free samples.
Originally published July 2017
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.