Significant Types Of GST Credit

Types Of GST Credit:

Eligible

Non-eligible

Blocked

List Of Eligible Input Tax Credits (ITC) Under GST:

1. Input tax credits on goods and services used for business purposes and acquired from registered suppliers
2. ITC on inputs (raw materials), including inputs used in the manufacture of goods such as components, ingredients, and packaging materials
3. ITC on capital goods, including machinery, equipment, and tools, used for business purposes
4. ITC on input services, such as transportation, logistics, advertising, legal, accounting, and consulting services
5. ITC on inward supplies received from a supplier located in a Special Economic Zone (SEZ).
6. ITC on tax paid on reverse charge mechanism (RCM) supplies, where the recipient of goods or services is liable to pay tax

Blocked ITC

1. Motor vehicles: ITC cannot be claimed on the purchase of motor vehicles unless they are used for specific purposes. Such as providing taxable transportation services, renting them out as taxis, or for training purposes.
2. Food, beverages, and outdoor catering: ITC is not available for goods or services related to food, beverages, and outdoor catering, except when used for further supply. Such items or for providing specified services like restaurants, canteens, and catering services.