Any services which are made obligatory for an employer to provide its employee by the Indian Government under any current law in force.įor example, assuming the government passes a rule for all employers to provide mandatory cab services to female staff in night shifts.However, the following are exceptions, i.e., ITC is available for. ITC is not available for rent-a-cab, health insurance and life insurance. Rent-a-cab, life insurance, health insurance ITC will not be available to the company or Mr. No ITC will be allowed on any membership fees for gyms, clubs, etc.Įxample- X, a Managing Director has taken membership of a club and the company pays the membership fees. Sale of membership in a club, health, fitness centre In the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him.In the manufacture of such motor vehicles, vessels or aircraft or.where received by a taxable person engaged.Same as exceptions mentioned for motor vehicles/vessels/aircrafts.No ITC is allowed on services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in (1).Įxceptions to ITC on insurance, repair or maintenance Services of general insurance, servicing, repair and maintenance Ajay Enterprises will not be able to claim ITC on the food & beverages served. However, ITC will be available if the category of inward and outward supply is same or the component belongs to a mixed or composite supply under GST.Įxample- Ajay Enterprises arranges for an office party for its employees. ITC is not for the supply of following goods or services or both: Here is a quick view of the Ineligible ITC on Motor Vehicles, Vessels and Aircraftsįood, beverages, club memberships and others However, this is concerning other transporters and not goods transport agencies (GTA). ITC will be allowed on motor vehicles (and other conveyances) used to transport goods from one place to another. The school can claim ITC on the GST paid on the car. ITC is available.Ĭ) Imparting training on driving, flying, navigating such vehicle or conveyances or vessels or aircrafts, respectively.Ī driving school purchases a car to give training to students. If you are providing transportation of passengers then ITC will be allowed on the vehicle purchased.įor example, Happy Tours purchased a bus for inter-city transport of passengers.
Since he is a dealer, he can claim ITC of 14 lakhs and pay only Rs.5.60 lakh (19.60 – 14). The same car was later sold for 70 lakhs along with Rs.19.60 lakh GST.
If you are in the business of supplying cars then ITC will be available.įor example, a car dealer purchases a car for Rs.50 lakh plus 14 lakh GST (ignoring cess calculations). ITC will be available when the vehicle is used for making taxable supplies by the following.Ī) Supply of other vehicles or conveyances, vessels or aircrafts. They cannot claim ITC on the same.Įxceptions to ITC on motor vehicles/vessels/aircrafts: Further, ITC is not available on vessels and aircrafts.įor example, XYZ & Co. However, ITC is available if the seating capacity of such motor vehicles exceeds 13 persons. ITC is not available for Motor vehicles used to transport persons, having a seating capacity of less than or equal to 13 persons (including the driver).