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:.
|
| 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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