Is ITC allowed on all the types of goods or services supplies under GST?

Input Tax Credit can be availed on purchase of both goods and services.
However, ITC cannot be claimed on the exempted supplies or the goods used for personal consumption.

Following is the list of goods/services where ITC CANNOT be claimed:

  • GST Input Tax Credit shall NOT be available on the purchases like food, beverages, beauty treatment, outdoor catering services, and beautification surgeries.
  • ITC shall not be available on purchases of life insurance or health insurance.
  • Purchase of motor vehicles or other conveyances except they are used for:-
    • Transporting the passengers
    • For training of driving, flying or navigating such vehicles
    • When these vehicles or conveyances are supplied further
  • Rent of a cab or other vehicle.
  • Membership purchases of gyms, clubs or fitness centers.
  • Traveling perks or benefits extended to employees by the employer.
  • Goods/Services used for personal consumption.
  • ITC cannot be claimed on stolen or destroyed goods or goods that are given as freebies.
  • ITC shall not be available on purchases of goods and services required to construct an immovable property. Except – Construction of a plant or machinery that will be used for the furtherance of business.

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