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Cases where GST Inputs are Not Available

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Cases where GST Inputs are Not Available

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  1. Cases where GST Inputs are Not Available | Ineligible Input Tax Credit | Block Credit

  2.  What is Ineligible Inputs tax credit or Blocked Credit under GST • When a registered taxable person are entitled to claim Input Tax credit of paid at the time of purchase of Inputs, Input Services or Capital Goods under head CGST, SGST, IGST, or UTGST  Which can be used for payment of output tax liability. However there are several cases where assesses can not claim input tax credit of GST paid while they receives or purchases goods or services.  • Ineligible inputs tax credit or blocked credit is cost to the company

  3.  Ineligible ITC on Items used for purpose other than Business Purpose (Section 17(1)) • If goods and services purchased is used partly for business purpose and partly for other purposes then ITC shall be allowed to the extent such item is used for the purpose of business. Therefore, ITC to the extent use for some other purpose is not allowed. • Manner of determination of ITC between used for business purpose and other purpose is given under Rule 42 of CGST Rules, 2017

  4. Travel benefit extended to employees on vacation • if you extend any travel benefit to your employees on vacation such as leave or home travel concession then GST paid on travel booking shall not be allowed. • However, if the travel packages include business purposes, then ITC shall be available. • E.g. Flight tickets booked for employees traveling for business meeting purpose then ITC on such flight tickets are allowed. However, if flight tickets are booked for personal travelling purpose of employees then no ITC shall be available

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