Blocked ITC – S.

17(5)

S. Head Particulars
No

1 Motor (a) motor vehicles for transportation of persons having

approved seating capacity of not more than thirteen persons
Vehicle [MV] (including the driver), except when they are used for making
the following taxable supplies, namely: —
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles

(aa) vessels and aircraft except when they are used––

I. for making the following taxable supplies, namely:
A. further supply of such vessels or aircraft; or
B. transportation of passengers; or
C. imparting training on navigating such vessels; or
D. imparting training on flying such aircraft;

II. for transportation of goods

(ab) services of general insurance, servicing, repair and

maintenance in so far as they relate to motor vehicles, vessels or
aircraft referred to in clause (a) or clause (aa) except when:
i. Where the motor vehicles, vessels or aircraft referred
to in clause (a) or clause (aa) are used for the purposes
specified therein;
ii. where received by a taxable person engaged—
I. in the manufacture of such motor vehicles,
vessels or aircraft; or
II. in the supply of general insurance services in
respect of such motor vehicles, vessels or
aircraft insured by him
2 Specified a. Food & Beverages, Outdoor Catering, Beauty Treatment,
Services Health Services and Cosmetic & Plastic Surgery, leasing,
renting or hiring of motor vehicles, vessels or aircraft whose
ITC is blocked except when used for the purposes specified
therein, life insurance and health insurance:
Exception: ITC is allowed when:
➢ Where a particular category of such inward supplies is
used for making an outward taxable supply of the same
category (i.e. sub-contracting) or as an element of a
taxable composite or mixed supply
➢ where it is obligatory for an employer to provide the
same to its employees under any law for the time being
in force.

b. membership of a club, health and fitness Centre;

Exception: ITC is allowed when:
 ➢ where it is obligatory for an employer to provide the
same to its employees under any law for the time being
in force.

c. travel benefits extended to employees on vacation such as

leave or home travel concession
Exception: ITC is allowed when:
➢ where it is obligatory for an employer to provide the
same to its employees under any law for the time being
in force.
3 Composition Inward Supplies from Composition Scheme Dealer
Tax

4 Non-resident Inward Supplies by Non-Resident Taxable Person [NRTP]

taxable Exception:
person IGST paid on goods imported by NRTP

5 Personal Use Inward Supplies used for Personal Consumption

6 Goods lost Goods lost / stolen / destroyed / written off or disposed of by way
etc. of Gift or Free Samples

7 Tax paid by Tax paid by the supplier

Supplier ➢ u/s 74 (Tax short / not paid or erroneously refunded due to
fraud etc.,) or
for ➢ u/s 129 (Amount paid for release of goods and conveyances
fraudulent in transit which are detained) or
reasons ➢ u/s 130 (Fine paid in lieu of confiscation)

8 Works ➢ Works Contract Service for Construction of Immovable

Contract & Property
Construction ➢ Inward Supplies received by taxable person for Construction
of Immovable Property on his own account including when
such supplies are used in the course or furtherance of
business
Exception:
➢ Works Contract Service / Construction is not being
capitalized in the books of accounts OR
➢ Works Contract Service / Construction is for ‘Plant &
Machinery’
➢ Works Contract Service / Construction is an inward supply
for its outward supply [i.e. sub-contracting]
Construction - Explanation to Section 17 of CGST Act, 2017

Includes Re-construction / Renovation / Addition / Alterations / Repairs

➢ to the extent of capitalisation to said immovable property

Works Contract – S. 2(119)

Means A contract for

➢ building, construction, fabrication, completion, erection,

installation, fitting out, improvement, modification, repair,
maintenance, renovation, alteration or commissioning
➢ of any immovable property
➢ wherein transfer of property in goods (whether as goods or in
some other form) is involved in the execution of such contract

Plant & Machinery - Explanation to Section 17 of CGST Act, 2017

Means Apparatus, Equipment and Machinery

➢ fixed to earth by foundation or structural support

➢ that are used for making outward supply of goods or
services or both and
Includes Such foundation and structural support

Excludes ▪ Land, Building or any other Civil Structures;

▪ Telecommunication Towers; and
▪ Pipelines laid outside the Factory premises.