Negative list of ITC under GST – ITC cannot be claimed on below list

Negative list of ITC under GST.: Government is making efforts to support the taxpayers with GST migration and resolve their questions. 2 call centres have been established for catering to inquiries of taxpayers and stakeholders in GST and also offering info relating to guidelines, FAQs and so on. In this regarding here we are offering Negative list of ITC under GST Regime in table format at below …

Negative list of ITC under GST

NATURE ITC CLAIM EXCEPTIONS
Food & Beverages ITC can not be claimed Allowed, If engaged in comparable line of work, then Full ITC can be claimed on these products
Outdoor catering ITC can not be claimed
Beauty treatment services ITC can not be declared
Health services ITC can not be declared
Cosmetic and plastic surgery ITC can not be claimed
Motor automobiles and other conveyances ITC can not be claimed Allowed, when they are used:.

  • ( a) For more supply of automobiles or such conveyances;-LRB- .
  • ( b) For transportation of travelers;-LRB- .
  • ( c) For imparting training on driving, flying, browsing such vehicles or conveyances;-LRB- .
  • ( d) For transport of goods
Rent a taxi service ITC can not be declared Allowed, If engaged in similar line of work or there is necessary requirement from federal government to offer such services by company to employee then full ITC can be declared on these items
Life Insurance service ITC can not be declared
Health Insurance service ITC can not be declared
Membership of a club, health & fitness Centre
LTA benefit encompassed employees
Construction Contract Services for building and construction of unmovable property Allowed, If taken part in comparable industry, then Full ITC can be claimed on these items
ITC on products and services utilized for self-construction of structure cost of which is capitalized in books

Followings Point to be kept in mind

  • Auto, metered taxi charges– Exempted under GST. Further, No GST will be paid even if the amount is sustained by workers and later on compensated
  • Cab service acquired from operator (OLA, UBER etc.,)– GST will be paid by the such operator itself. There is no liability on the service receiver. Further, the taxes paid by the operator can not be availed as credit.
  • Cab services acquired from other companies– GST will be paid by the company itself if they are registered, if not service receiver will pay GST on the same as a service receiver. The taxes paid is not readily available as credit
  • Local bus charges– Stage carriage is exempted under GST. No GST shall be paid even if the amount is incurred by staff members and later compensated.

Author– CA. Rishabh Aggarwal

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