Saturday, October 21, 2017

negative list of itc under gst



Also Read The followoing GST Tutorials


Followings Point to be noted:-


  • Auto, metered cab charges - Exempted under GST. Further, No GST shall be paid even if the amount is incurred by employees and later on reimbursed

  • Cab service procured from the operator (OLA, UBER etc.,) - GST will be paid by such operator itself. There is no liability on the service receiver. Further, the taxes paid by the operator cannot be availed as credit.

  • Cab services procured from other agencies - GST will be paid by the provider itself if they are registered, if not service receiver shall pay GST on the same as a service receiver. The taxes paid is not available as credit

  • Local bus charges - Stage carriage is exempted under GST. No GST shall be paid even if the amount is incurred by employees and later on reimbursed.


gst exceptions and claim list



NATURE: Food & Beverages, Outdoor catering, Beauty treatment services, Health services, Cosmetic and plastic surgery
ITC CLAIM: ITC cannot be claimed
EXCEPTIONS: Allowed, If engaged in similar line of business, then Full ITC can be claimed on these items.

NATURE: Motor vehicles and other conveyances
ITC CLAIM: ITC cannot be claimed
EXCEPTIONS: Allowed, when they are used:
(a) For further supply of vehicles or such conveyances;
(b) For transportation of passengers;
(c) For imparting training on driving, flying, navigating such vehicles or conveyances;
(d) For transportation of goods

NATURE: Rent a cab service, Life Insurance service, Health Insurance service
ITC CLAIM: ITC cannot be claimed
EXCEPTIONSAllowed, If engaged in similar line of business or there is mandatory requirement from government to provide such services by employer to employee then full ITC can be claimed on these items

NATURE:  Membership of a club, health & Fitness Centre
ITC CLAIM: ITC cannot be claimed

NATURE: LTA benefit extended to employees
ITC CLAIM: ITC cannot be claimed

NATURE: Construction Contract Services for construction of immovable property
ITC CLAIM: ITC cannot be claimed
EXCEPTIONS: Allowed, If engaged in similar line of business, then Full ITC can be claimed on these items

NATURE: ITC on goods and services used for self-construction of building cost of which is capitalized in books
ITC CLAIM: ITC cannot be claimed

Thanking to
Mr.CA. Rishabh Aggarwal
(GST Academy LLP)
+91-9654264464

Also Read The followoing GST Tutorials

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