Analysis of Section 17(5) : ITC not allowed in certain cases
Sec-17 (5) : Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of the following, namely:—
चाहे SEC-16(1) और SEC-18(1) में कुछ भी कहा गया हो , नीचे दिये गये CASES में ITC नहीं मिलेगा :
a. motor vehicles and other conveyances except when they are used-
(i) for making the following taxable supplies, namely:—
(A) further supply (Sale/Lease/Rent/transfer) of such vehicles or conveyances ; or
[Motor-vehicle की supply कर रहे है]
(B) transportation of passengers; or
[Passengers के ट्रांसपोर्टेशन के लिए कर रहे है]
(C) imparting training on driving, flying, navigating such vehicles or conveyances;
[Motor- Driving ट्रेनिंग School चलाते है]
(ii) for transportation of goods;
b. the following supply of goods or services or both—
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery Except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness center;
(iii) rent-a-cab, life insurance and health insurance except where––
(A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or
(B) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and
(iv) travel benefits extended to employees on vacation such as leave or home travel concession;
c. works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;
d. goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.
Explanation.– For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property;
e. goods or services or both on which tax has been paid under section 10;
f. goods or services or both received by a non-resident taxable person except on goods imported by him;
g. goods or services or both used for personal consumption;
h. goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and
i. any tax paid in accordance with the provisions of sections 74, 129 and 130.
For Your Reference :
Sec-74 : Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts.
Sec-129 : Detention, seizure and release of goods and conveyances in transit.
Sec-130 : Confiscation (कुर्की/जब्ती)of goods or conveyances and levy of penalty.