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TMI BlogSGSTDK- Input Tax Credit claimed on ITC Blocked transactionsX X X X Extracts X X X X X X X X Extracts X X X X ..... visions are explained below for reference: As per Section 17 (5) of GST Act, 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 certain transactions. The major scenarios include the following: I. Irregular Claim of ITC on Motor Vehicle (Passenger Vehicle) II. Construction Services. III.Goods or Services used for Construction of Immovable Property. IV.Other scenarios. I. Irregular Claim of ITC on Passenger Motor Vehicle: From 01.07.2017 to 31.01.2019: As per Section 17 (5) of SGST Act, Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imited to the Passenger Motor Vehicles as discussed above only. II. Irregular Claim of ITC on Construction Services: As per Section 17 (5) of SGST Act, Notwithstanding anything contained in subsection (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (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; Thus in simple terms, a Tax Payer who is not engaged in businesses of Construction Service and had claimed ITC on Construction Service (other than plant and machinery) is liable to reverse the ITC claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e; and (iii) travel benefits extended to employees on vacation such as leave or home travel concession: (except where it is obligatory for an employer) (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 byway of gift or free samples; and (i) any tax paid in accordance with the provisions of sections 74,129 and 130. (Please refer the SGST Act/CGST Act for detailed provisions) 3. Correct Declaration of ITC in Monthly GSTR 3B: The detailed procedure to be followed for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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