Dear ecperts pls clarify.
What is the meaning of this which is prescribed under Sec17 blocked credits. whether it is eligible or not
[ab] services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in clause [a] or clause [aa]
Hello,
ITC is admissible only in respect of supplies taken for business purposes. Thus supplies received for personal purposes are blocked. Such goods being not used for providing taxable supplies , the ITC thereon is blocked u/s 17(5).
Further, CBIC has from 9 October 2019 notified that only 20% of ITC available in GSTR-2A can be claimed as provisional ITC in GSTR-3B. It means the amount of ITC reported in GSTR-3B from 9 October 2019 will be a total of Actual ITC in GSTR-2A and provisional ITC being 20% of actual ITC in GSTR-2A. Hence, matching purchase register or expense ledger with GSTR-2A becomes crucial.
Therefore you can't use these credit, even if it is showing in your GSTR2A.
CAclubindia
