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May 23, 2024 · Section 17(5) of CGST Act, also referred to as blocked credits, is a very important provision for every regular taxpayer under GST. It defines a list of purchases on which GST is paid but businesses cannot claim these as the Input Tax Credit (ITC).
(2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is ...
An Act to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith or incidental thereto.
Jan 20, 2023 · Accordingly, overriding both section 16 (1) and section 18 (1), provisions of section 17 (5) simply state that input tax credit shall not be available in respect of listed goods or services or both. The list of said ‘blocked input tax credit’ is detailed below.
May 12, 2021 · Article explains GST Provision related to Blocked Credit under section 17 (5) of CGST Act 2017 on Supply of Goods /Service involved, Insurance of Motor Vehicle including motor cycle, Cost of Motor Vehicle, Servicing of Motor Vehicle, Life Insurance/health insurance of Worker & office Staff, Food & Beverages, Works contract service & Goods & ...
May 27, 2024 · The CGST Act's Section 17(5) addresses blocked credits or ineligible Input Tax Credit (ITC) within the GST framework. When making purchases listed in this provision, taxpayers are unable to claim ITC while settling output tax. This provision provides 11 clauses under which ITC cannot be claimed.
When is Input Tax Credit not Available? Here are the categories of blocked credit under GST for which the input tax credit cannot be claimed: Clauses (a) Section 17 (5) of CGST Act. ITC claims cannot be availed of on GST paid for the purchase of aircraft, ships, and aquatic vessels.
