Legislative Reference
CGST Act (as amended dated 29th Aug 2018)
CGST Section 17(5) – Apportionment of credits and blocked credits
Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:
| (a) | motor vehicles for transportation of persons having approved seating capacity of not more than 13 persons (including the driver), except when they are used for making the following taxable supplies, namely – (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) imparting training on driving such motor vehicles |
| (aa) | vessels and aircraft except when they are used for making the following taxable supplies, namely:further supply of such vessels or aircraft; or transportation of passengers; or imparting training on navigating such vessels; or imparting training on flying such aircraft; for transportation of goods |
| (ab) | services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) Provided that the input tax credit in respect of such services shall be available where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; where received by a taxable person engaged – in the manufacture of such motor vehicles, vessels or aircraft; or in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him |
| (b) | the following supply of goods or services or both – |
| food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is 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 | |
| membership of a club, health and fitness centre; and | |
| travel benefits extended to employees on vacation such as leave or home travel concession | |
| Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force. | |
| (c) | works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service |
| (d) | 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 including when such goods or services or both are used in the course or furtherance of business. Explanation: For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property |
| (e) | goods or services or both on which tax has been paid under section 10 |
| (f) | goods or services or both received by a non-resident taxable person except on goods imported by him |
| (g) | goods or services or both used for personal consumption |
| (h) | goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and |
| (i) | any tax paid in accordance with the provisions of sections 74, 129 and 130 |