TMI BlogBlock credit - Use of services of Food, Catering, Vehicle Renting, Club, & Travel [Section 17(5)(b) of CGST Act]X X X X Extracts X X X X X X X X Extracts X X X X ..... cified therein, [ refer the clarification issue no. 2 mention below] (b) Exception The input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both, or as an element of a taxable composite or mixed supply. [ sub- clause (i) of clause (b) of sub- section (5) of section 17 ] (ii) The following supply of goods or services or both; Membership of a club, health and fitness center; an [ sub- clause (ii) of clause (b) of sub- section (5) of section 17 ] (iii) The following supply of goods or services or both; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for making outward supply of same category of services is used for its own company. so in that ITC on inward supply not available to film production company. Example 4:- Smart Pvt. Ltd. (registered person) takes annual membership of a fitness services from HiFi Fitness center also registered for use of its employees. In that case Smart Pvt. Ltd. cannot take ITC on inward services on the GST paid on Member ship charges. Example 5:- Varn Pvt. Ltd. registered person reimburse its senior employees on travel expenses as part of LTA (Leave Travel Allowances). In that case, Varn Pvt. Ltd. cannot take ITC on inward supply related to Leave travel allowances expenses incurred by the senior employees. CBIC provide clarificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Legal Provision:- Sub-clause (i) of clause (b) of sub- section (5) of section 17 of the CGST Act provides that ITC shall not be available in respect of following supply of goods or services or both- (i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance. Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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