Blocked Credits Under GST: Generally the input tax credit eligibility is based on whether the same is used for taxable supplies or exempt supplies. Where the goods or service is used for both taxable and exempted supplies, only proportionate credit is eligible to registered person only with respect to taxable supplies. It is to be noted that Zero rated supplies are taxable supplies and any input goods or services used for giving such outward supplies would be eligible for credits. read more from below...
Blocked Credits under GST
ITC based on use in furtherance in businessInput Tax credit used for business purposes will be declared as eligible Input Tax Credit and those used for other purposes will not be able to claim as input tax credit except blocked credit, which are specifically provided separately.
Ineligible Input Tax Credit / Blocked Credits
- (a) Further supply of such vehicles or conveyances or
- (b) Transportation of passenger or
- (c) Imparting training on driving, flying, navigating such vehicles or conveyances;
- (a) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where such supply of goods or services of each category is used for making an outward taxable supply of the particular category of goods or services or both or as an element of a taxable composite or mixed supply.
- (b) membership of a club, health and fitness centre
- (c) rent-a-cab, life insurance, health insurance except where it is notified by the Government as obligatory for an employer to provide to its employees under any law for the time being in force; or 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
- (d) travel benefits to employees on vacation i.e. leave or home travel concession.
- Section 74:-Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts.
- Section 129:-Detention, seizure and release of goods and conveyances in transit.
- Section 130:- Confiscation of goods or conveyances and levy of penalty.
Q: 1 What do you mean by ‘Plant and Machinery’?
- (i) land, building or any other civil structures;
- (ii) Telecommunication towers; and
- (iii) Pipelines laid outside the factory premises.