GST is in fact an unbelievably revolutionary tax reform that has enhanced the smoothness of business in India. The most startling aspect in the Goods and Service Tax laws are of the Input Tax Credit, wherein the individual having GST registration can without much of a stretch avail the Input credit of the GST paid on the buy of crude material. The ITC can be balanced with the GST payment that will emerge while making future deals.

 

Notwithstanding, there are sure circumstances where the Input Tax Credit can't be taken by the enlisted individual. Here we can view each one of those Goods and Services where ITC isn't accessible.

 

#1. Motorcars  

ITC is just accessible if the vehicle is utilized for these purposes:

 

• Selling Vehicle

 

On the off chance that you are in the car dealing business, at that point ITC will be accessible.

 

• Travelling and voyage

 

In the event that you are into the travelling business, at that point, ITC will be permitted on the vehicles obtained.

 

• Driving classes

 

In the event that you are running a driving training centre with GST registration and giving preparing to the amateur drivers, you can take ITC on the GST on such a car.

 

• Transport business

 

ITC is accessible on business vehicles utilized for shipping of goods. Nonetheless, ITC isn't permitted for goods transport agencies (GTA).

 

#2. Catering and Hospitality Services

ITC isn't accessible if there should arise an occurrence of following goods and services:

 

• Food and refreshments

 

• Catering service

 

• Beautician services

 

• Therapeutic services

 

• plastic surgery

 

Reminder: ITC is accessible if the goods or services fall under the classification of a mix or composite supply under GST.

 

#3. Membership of Club

 

ITC isn't permitted on any participation expenses for night clubs, spas, sports club and yoga classes, and so forth.

 

#4. Works Contract

Input Credit will not be accessible if there should be an occurrence of work contract services. Input Tax Credit for the development of ardent property can't be asserted, with the exception of where such service is utilized for further work contract services.

 

Find out about GST on works contract.

 

#5. Development Of Real estate Property

Very recently, the Government had declared a new GST rate on the Real estate which is 5% and 1% on reasonable housing. Here, ITC isn't accessible for goods and services for the development of such property on your own plot. Regardless of whether such goods and services are employed in the course or advancement of business, ITC will not be accessible.

Be that as it may, this does not have any significant bearing to plant or apparatus. ITC is accessible on inputs used to make plant and apparatus for possess use.

 

#6. GST Composition Scheme

 

ITC can't be guaranteed to an individual having GST registration under composition scheme.

 

#7. NRI individual

ITC will not be easy to get to a non-inhabitant taxable Indian (NRI) purchasing goods and services in India. In any case, ITC is accessible on only those goods imported by an NRI.

 

#8. Self use of goods

No ITC is accessible for the goods or services purchased for self-use.

 

#9. FREE Gifts

ITC is not accessible for goods given as free examples.

 

#10. Eateries and hotels

The eateries, as well as the hotels, will charge GST @ 5%. However, the hotelier can't claim any input credit on such service.

 

In any case, ITC is accessible for cafés inside the lodgings where room levies more than ₹7,500 and on which GST @18% is charged.

 

In this way, these are significant situations where GST ITC isn't accessible.