Blocked ITC under section 17(5)
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Updated 03 Oct 2026
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AI summary
Purchases where GST credit is never allowed, and the exceptions.
2 sections
Blocked list
| Item | Exceptions (ITC allowed) |
|---|---|
| Motor vehicles for up to 13 people (including the driver), and their repairs and insurance | Used to supply more vehicles, transport passengers, or train drivers; vehicles for goods transport |
| Vessels and aircraft | Used for the same kinds of taxable supplies or transport of goods |
| Food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery | Used to make the same type of supply, or compulsory for employers under law |
| Club, health and fitness memberships | — |
| Rent-a-cab, life and health insurance | Compulsory for employers under law, or used for the same supply |
| Travel benefits to employees on leave (LTC) | — |
| Works contract and goods/services for construction of immovable property on your own account | Plant and machinery |
| Purchases by a composition taxpayer | — |
| Goods lost, stolen, destroyed, written off, given as gifts or free samples | — |
| Personal consumption | — |
| Tax paid under demand orders for fraud (and detention/confiscation) | — |
In practice
Book these purchases with GST as part of the expense or asset cost, or claim and immediately reverse in GSTR-3B Table 4B(1).
Sources
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