Скачать или смотреть GST ITC BLOCK CREDIT U/S 17(5)

What is Blocked Credit?
Under GST, businesses can claim Input Tax Credit (ITC) on taxes paid for purchases used in their business.

But in some cases, the law restricts or blocks ITC even if GST has been paid.

This restriction is called Blocked Credit.
🔹 Legal Reference
Blocked credits are given under Section 17(5) of the CGST Act, 2017.

🔹 Main Cases of Blocked Credit
You cannot claim ITC in the following cases:

Motor vehicles & conveyances – ITC not allowed unless used for transport of goods, passengers, or training.

Food, beverages, outdoor catering, beauty treatment, health services, club membership, etc. – blocked unless used to provide the same service further.

Works contract services for construction of immovable property (except when used for further supply of works contract).

Construction of immovable property (other than plant & machinery) on own account, even if used for business.

Goods or services used for personal consumption.
Travel benefits to employees (like leave travel concession).

Goods lost, stolen, destroyed, written off, or given as gifts/free samples.

🔹 Simple Meaning
Even if you pay GST on these items, you cannot take credit in your GST return.

👉 In short: Blocked Credit = ITC not allowed as per law, even if GST paid.









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