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1. Cases where GST Inputs are Not Available |
Ineligible Input Tax Credit | Block Credit

3. What is Ineligible Inputs tax
credit or Blocked Credit under
GST
• When a registered taxable person are entitled
to claim Input Tax credit of paid at the time
of purchase of Inputs, Input Services or
Capital Goods under head CGST, SGST, IGST, or
UTGST Which can be used for payment of output
tax liability. However there are several cases
where assesses can not claim input tax credit
of GST paid while they receives or purchases
goods or services.
• Ineligible inputs tax credit or blocked credit
is cost to the company

4. Ineligible ITC on Items used for
purpose other than Business Purpose
(Section 17(1))
• If goods and services purchased is used partly
for business purpose and partly for other
purposes then ITC shall be allowed to the
extent such item is used for the purpose of
business. Therefore, ITC to the extent use for
some other purpose is not allowed.
• Manner of determination of ITC between used for
business purpose and other purpose is given
under Rule 42 of CGST Rules, 2017

5. Travel benefit extended to
employees on vacation
• if you extend any travel benefit to your
employees on vacation such as leave or home
travel concession then GST paid on travel
booking shall not be allowed.
• However, if the travel packages include
business purposes, then ITC shall be available.
• E.g. Flight tickets booked for employees
traveling for business meeting purpose then ITC
on such flight tickets are allowed. However, if
flight tickets are booked for personal
travelling purpose of employees then no ITC
shall be available