List of Inward supplies on which input tax credit of GST is not allowed and exceptions thereto
(Section 17(5) of CGST Act, 2017)

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 and other conveyances except when they are used ––

        (i) for making the following taxable supplies, namely:—

                 (A) further supply of such vehicles or conveyances ; or 

                 (B) transportation of passengers; or

                 (C) imparting training on driving, flying, navigating such vehicles or conveyances;

        (ii) for transportation of goods;

 

(b) the following supply of goods or services or both—

       (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category 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;

       (ii) membership of a club, health and fitness centre;

       (iii) rent-a-cab, life insurance and health insurance except where––

                 (A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or

                  (B) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and

       (iv) travel benefits extended to employees on vacation such as leave or home travel concession;

(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 capitalisation, to the said immovable property; 

(e) goods or services or both on which tax has been paid under section 10;

i.e. Tax paid to Composite Taxable Person under Composition scheme. 

(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.

i.e. Penalties etc.

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