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 queries. Two call centres have been set up for catering to queries of taxpayers and stakeholders in GST and also providing information regarding guidelines, FAQs etc. In this regarding here we are providing 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 cannot be claimed Allowed , 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
Motor vehicles and other conveyances ITC cannot be claimed Allowed , when they are used:

  • (a) For further supply of vehicles or such conveyances;
  • (b) For transportation of passengers;
  • (c) For imparting training on driving, flying, navigating such vehicles or conveyances;
  • (d) For transportation of goods
Rent a cab service ITC cannot be claimed Allowed , 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
LTA benefit extended to employees
Construction Contract Services for construction of immovable property Allowed , 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

Followings Point to be noted

  • Auto, metered cab charges – Exempted under GST. Further , No GST shall be paid even if the amount is incurred by employees and later on reimbursed
  • Cab service procured 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 cannot be availed as credit.
  • Cab services procured from other agencies – GST will be paid by the provider itself if they are registered, if not service receiver shall pay GST on the same as a service receiver. The taxes paid is not available as credit
  • Local bus charges – Stage carriage is exempted under GST. No GST shall be paid even if the amount is incurred by employees and later on reimbursed.

Author – CA. Rishabh Aggarwal

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