INPUT TAX CREDIT OF MOTOR VEHICLES
| NATURE OF BUSINESS | NATURE OF VEHICLE | ITC CLAIM |
| Dealer of Motor Vehicle | Any Vehicle | Full ITC can be claimed |
| Passenger Transportation | Vehicle used for Passenger Transportation
Any Other vehicle |
Full ITC can be claimed
ITC cannot be claimed |
| Training relating to driving of such vehicle | Vehicle used for training
Any other Vehicle |
Full ITC can be claimed
ITC cannot be claimed |
| Any other business | Vehicle used for transportation of goods
Any other vehicle |
Full ITC can be claimed
ITC cannot be claimed |
INPUT TAX CREDIT ON OTHER ITMES
| NATURE | ITC CLAIM | EXCEPTIONS |
| Food & Beverages | ITC cannot be claimed | If engaged in similar line of business, then Full ITC can be claimed on these items |
| Outdoor catering | ITC cannot be claimed | |
| Beauty treatment services | ITC cannot be claimed | |
| Health services | ITC cannot be claimed | |
| Cosmetic and plastic surgery | ITC cannot be claimed | |
| Rent a cab service | ITC cannot be claimed | 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 |
| Life Insurance service | ITC cannot be claimed | |
| Health Insurance service | ITC cannot be claimed | |
| Membership of a club, health & fitness Centre | ITC cannot be claimed | No exception |
| LTA benefit extended to employees | ITC cannot be claimed | No exception |
| Construction Contract Services for construction of immovable property | ITC cannot be claimed | If engaged in similar line of business, then Full ITC can be claimed on these items |
| ITC on goods and services used for self-construction of building cost of which is capitalized in books | ITC Cannot be claimed | No exception |
Amit Mundhra FCA
Author is member of ICAI and this information is compiled for informational and educational purpose only. He can be reached at Email : amit.mundhra@gmail.com
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its very useful post.
Sir,
Our business as construction Service, can we get ITC on Hotel Accommodation exp.
pls reply
Regards,
ajay k
Yes, ITC on hotel accomodation is available.
dear sir, there is a air conditioned restaurant. we are providing cold drink with food. than What Will be rate of GST on that? whether it will be 18 % or 28% with 12% cess. if we provide cold drink without food in restaurant than what will be rate of GST on cold drink ?
Sir, ours is a proprietorship firm and we have purchased 2 mobiles for our employees with the name of proprietor. can i take it input for the same.
Reg.,
Baiju
Yes, input is available on mobile phones.
Hi Sir, this is Jagan I’m a Mobile Retailer & wholesaler.
I have a doubt in claiming ITC. Rent paid including GST is Rs. 21,063 (Rent Rs. 17,850 + SGST 1,606.50 + CGST 1,606.50). Can ITC on rental expense be claimed?
How to deal with this in GST return filing. Thanks in advance.
Yes, you can claim ITC of rent paid. You will have to claim it in GSTR-2
Sir if I purchased a Two wheeler in a Name of firm..For my Trading Business..and I have used this two wheeler for supply of goods..whether I can claim ITC or not..
It will be very difficult to prove unless your two wheeler is registered as commercial vehicle.
ITC will not be available in this case.
Whether Itc of capital goods can be claimed in one full year or within 5 years on proportionate basis.
ITC can be claimed in the first year itself.
information furnished are very useful to the GST payers practitioners and tax officials as well
Sir if transportation facility provided to our employees than we can claim itc on such expenditure
Yes, input will be available on transportation facility provided to employees.
Sir, We used purchase food items (i.e snacks) for employees, they are charging GST on the same.
For food items there is no ITC avialable. But the same are appearing in my GST Portal under GSTR-2A.
What i have to do, while filing GSTR-2.
Pls do the needful urgent.
Mark them as ineligible ITC in GSTR-2
Dear Sir,
We are into infrastructure(Construction Contracting)/Works Contract Business, We are hiring Passenger Vehicles at our work site (Transporting our employees from one place to another), can we avail GST credit against such hire charges, which is charged by our vendor /Service provider in his Tax Invoice ??
Regards,
Jai
Yes, you can claim credit.
Dear Sir
We are doing telecom business, during the month variouse schemes are run in market for dealers like target base, spike etc if the dealer achive target the we issue credit note to dealer,
we have issue credit note to partner without GST,
Now quetion is , should be charge GST in credit note
if yes , under which section/rule cover
If No, why ?
Regards
CA.Mukesh Agarwal
I am service provider
For repairing & renovation of office , I bought Glasses, Plywood , Formica & hardware
All are capitalized to furniture & fixture.
Can I avail GST on all above purchases ?
Please guide
ITC will be available as long as the furniture is movable.
My friends have restaurant business & also have franchise income in one company
Can he opt composition on restaurant business GST @5% & for franchise income GSt @ 18%
Now on restaurants, rate of tax is 5%. no need to opt for composition.
Hello Sir,
We have proprietorship firm. We are moveing in another place. If we get gst invoice from ragisre person, of flooring, furniture, fittings, air conditioner, cctv, etc. on firm’s name. Then will we get itc on those goods?
Flooring being immovable assets, ITC not allowed.
Furniture fittings, aC, CCTV being movable assets ITC will be allowed.
Dear Sir/Mam
Please let us know the GST Rate of hiring a bus on rent for office staff pick and drop to home, hiring charges taken on monthly basis. and whether ITC Credit is available on that or Not???
If output tax of a trader is less than the input tax then how to compute his tax
Sir,
we are providing education services till 12th class and registered under GST, pl clarify the following services/goods whether liable to GST or not.
1. Education fees received from students
2. sale of note book/ stationary and uniforms to students
3. ITC can be claim on purchase of books/uniform
4. ITC can be claim on construction/ repaire of school.
A Trust wants to construct its office building through a contractor and the main sources of income of the Trust from Property, for which it raises GST on rent from the tenants. Now, I want to know whether the Trust can claim ITC of GST paid to the contractor of the building against GST payable on rent?