As per CGST Act, input tax credit for following goods and services are not available or is ineligible:
ITC cannot be claimed on motor vehicles if they are used for self-consumption by companies or individuals.
However, ITC can be claimed on motor vehicles in the following conditions:
– When vehicles are used for providing training on driving, flying or navigating
– When vehicles are further supplied
– When vehicles are used for transporting goods or passengers
ITC on food and beverages, outdoor catering cannot be claimed as input unless they are used for making output supply of the same category of goods and/or services.
ITC on beauty treatment, health services, cosmetic and plastic surgery cannot be claimed as input unless they are used for making output supply of the same category of goods and/or services.
ITC on membership of clubs and health & fitness centres, rent-a-cab services and life & health insurance taken for employees cannot be claimed as input except when the Government notifies it as services which are obligatory for an employer to provide to its employees under law.
Travel benefits extended to employees on vacation such as leave or home travel concession cannot be claimed as input tax credit.
ITC on Goods or services used for personal consumption is not eligible for input tax credit
Tax payers who are making exempted sales/services can’t claim input tax credit on goods and/or services used as inputs.
Input tax credit is not available for goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples.
Goods or services received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account or even when it’s used in the course or furtherance of business cannot be claimed as input tax credit. Under GST Act, construction includes re-construction, renovation, additions or alterations or repairs.
Composition Tax payers are typically small tax payers who are exempted from collecting outward tax and can’t claim input tax credit .So, composition tax payers cannot avail ITC on goods and/or services used as inputs.