Block Credit - Goods or services or both used for personal consumption [Section 17(5)(g)] - GST Ready Reckoner - GST

Block Credit - Goods or services or both used for personal consumption Section 17(5) Clauses (g) - Goods or services or both used for personal consumption ITC is not available on purchases that are not used in business but used for personal purposes. If part of goods or services purchased is consumed for both business and personal use, then ITC will be allowed only to the extent of business use as per the formula of common credit. Examples Example 1:- M/s Kiara Enterprises is seller of cooler, purchase 50 cooler of 2,50,000/-(exclusive GST) for sale during the summer period, out of the stock one cooler take one cooler for personal use and remain cooler sold to customer. In that case, ITC on purchase of cooler available only 49 cooler and one cooler which use for persona consumption ITC will not allowed to M/s Kiara Enterprises as per section 17(5)(g) of CGST Act. Example 2:- M/s Kiara Enterprises is seller of cooler, purchase 50 cooler of 2,50,000/-(exclusive GST) for sale during the summer period, out of the stock one cooler take one cooler for personal use and remain cooler sold to customer. that one used for personal purpose after summer period four month thereafter sale to customer at discounted price. In that case, ITC on purchase of cooler available only 49 cooler and one cooler which use for persona consumption four months there after sale to customer at discounted prices, here ITC will be allowed only to the extent of business use as per the formula of common credit.